Emphasis on “Ethereum Only” by Grayscale.
Asset manager says mass interest in Ethereum is growing. Bitcoin (BTC) has linked many investors to crypto, according to Grayscale, but Ethereum has begun to gain more attention.Grayscale CEO Michael Sonnenshein said in a phone interview with Bloomberg that 2020 saw a significant increase in “Ethereum only” investors, highlighting the asset’s growing appeal beyond the developer community.
Grayscale manages a class of funds that allows investors to direct their orientation to the cryptocurrency market. Although Grayscale’s Bitcoin Trust remains the most popular fund, Ethereum Trust also experienced a sharp increase in net entries.In the third quarter, weekly inflows to the Grayscale Ethereum Trust averaged $ 15.6 million. Net investments in the larger Bitcoin Trust averaged $ 55.3 million a week. The Grayscale fund family saw record entries in late October.
Earlier this week, Grayscale announced that the Ethereum Trust will undergo a nine-to-one split on December 17th, a move that could make the fund more attractive to investors. The shareholders registered as of December 14 will receive eight additional shares for each share held.
Much of Ethereum’s expanding appeal comes from an explosion of decentralized finance or DeFi applications built on top of the blockchain. Ethereum “appears to maintain its platform leadership status” in this emerging market, Bloomberg Intelligence strategist Mike McGlone said.
Ethereum price has increased by more than 353% to date, but has yet to reach half of its all-time high.Speaking about the future of Ethereum, Sonnenshein said the smart contract platform is “in line with the enduring power that Bitcoin has”.