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Grayscale sees a new surge of investors for Ethereum

Grayscale’s managing director, Michael Sonnenshein said that while Bitcoin is the first digital asset to enter the economy, he lauded the significant number of people and investors focusing their attention on Ethereum.

‘Over the course of 2020, we are seeing a new group of investors who are Ethereum-first and in some cases Ethereum-only. There’s a growing conviction around Ethereum as an asset class’, he said.

‘The development of the asset class has continued to solidify itself,’ Sonnenshein said. ‘Ethereum has along the same lines of the staying power Bitcoin has’.

Grayscale is a company that handles over $10 billion in assets in its platform. One of its most popular accounts is the Grayscale Bitcoin Trust, which boasts a whopping average of $39.5 million worth of assets on a weekly basis. However, it’s Grayscale Ethereum Trust Fund is also seeing a significant increase in revenue.

‘Grayscale Ethereum Trust has garnered the attention of a new segment of Ethereum-focused institutional allocators. During 3Q20, over 17% of inflows into the Grayscale Ethereum Trust came from new institutional investors’, said in their report.

According to recent reports, Ethereum and the Grayscale Ethereum Trust will implement a share split of 9-for-1, a strategy that they claim would appeal to more individual investors. In a press release by Grayscale, they said that this venture will start on December 17, 2020.

‘The Share Split will be effected on December 17, 2020, to shareholders of record as of the close of business on December 14, 2020. Following the Share Split, the Trust’s Shares will continue to be quoted on the OTCQX under the symbol “ETHE”’.

Moreover, they also said that shareholders are not expected to put in their shares in the Trust.

‘Shareholders are not required to take any action to receive the Shares in connection with the Share Split and they will not be required to surrender or exchange their shares in the Trust. The transfer agent will automatically issue the new Shares in the Share Split’.

By market capitalization, Ethereum stands as the second-largest digital asset in the crypto sphere. Developed by Vitalik Buterin, this asset has been improved and launched the Beacon Chain, a new upgrade on the system that enables a robust technology in order to process more transactions in a short period of time. According to Sonnenshein, Ethereum has the power to ‘solidify’ itself.

Just recently, Ethereum was upgraded to its 2.0 version. The initial phase of the coin is dubbed as ‘Serenity’. In this launch, a new consensus mechanism called the ‘Casper protocol’ was introduced. This mechanism will replace the proof of work concept with a proof of stake, which will require validators to lock up their tokens in the network to be able to approve transactions.

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