Ether fever hits the biggest ones – Grayscale’s cryptocurrency funds continue their wild rise. According to the CEO of the firm, its institutional clients are particularly fond of Ethereum (ETH) lately.
The $ 12.6 billion crypto-fund
The investment funds offered by Grayscale have always been very successful with its (very) wealthy clients. They allow them to invest in crypto-assets , without having to manage their sometimes complex storage themselves (especially for such sums).
The latest news is that Grayscale Investments now has more than $ 12.6 billion in cryptocurrency under its management. We will already notice that, among these cryptos, the Grayscale Ethereum Trust fund has experienced very good progress .
Indeed, compared to just a month ago , Grayscale’s ether holdings have grown from a value of $ 1.1 billion to now nearly $ 1.68 billion , an increase of nearly 53%. of ethers under management.
Soon a mad race for ethers?
In an interview with Bloomberg, Michael Sonnenshein , managing director of Grayscale, explained that this trend of buying ETH is likely to accelerate more than to reverse.
While Bitcoin (BTC) has so far been overwhelmingly the first (and sometimes even the only) choice for Grayscale’s institutional clients, things seem to have changed for some time:
“In the year 2020, we see a new group of investors who go first for Ethereum and, in some cases, even only for Ethereum (…). There is a growing conviction around Ethereum as an asset class. “
It must be said that in addition to its status as the main platform for smart contracts and decentralized applications (dApps), the image of the Ethereum network has also benefited a lot from decentralized finance (the famous DeFi) during this second half of 2020 .
So many good points that make Michael Sonnenshein say that:
“The development of the asset class has continued to solidify (…) Ethereum has the same strength as Bitcoin. “
The head of Grayscale thus saw the flow of money entering the ETH fund from around $ 20 million in the fourth quarter of 2019, to more than $ 204 million in the third quarter of 2020. And the last quarter of this year, although still unfinished, this record is already exploding .
One thing is certain: Grayscale made a largely winning bet by choosing this specialized cryptocurrency sector, dedicated to institutional investors. Their arrival is starting to be clearly felt in the crypto market. Yet that would only be the beginning , according to some legendary traders.