Bitcoin (BTC) has a lot of investors interested in cryptocurrencies. But it’s Ethereum’s Ether (ETH) that is drawing the most attention, according to Grayscale.
In a phone interview with Bloomberg, the CEO Michael Sonnenshein said there was a significant increase in investors “only focusing on Ethereum” in 2020. Highlight the growing appeal of the asset beyond the development community.
“As 2020 goes on, we see a new group of investors who are Ethereum first and in some cases just Ethereum. […] The belief in Ethereum as an asset class is growing. “
Grayscale manages a class of funds that give investors direct exposure to the cryptocurrency market. Although your Bitcoin Trust is still the most popular fund, The Ethereum Trust also saw a sharp increase in net inflows.
In the third trimester The weekly entries in Grayscale’s Ethereum Trust averaged $ 15.6 million. The net investment in its Bitcoin Trust averaged $ 55.3 million per week. The Grayscale family of funds saw record inflows in late October.
Earlier this week Grayscale announced that its Ethereum Trust will be split 9 for 1 on December 17th, which could make the fund more attractive to investors. As Cointelegraph reported, Shareholders of record on December 14th will receive eight additional shares for every share they own.
A large part of the growing appeal of Ethereum is the large number of decentralized financial applications (DeFi) that are built on top of the blockchain. Bloomberg Intelligence Strategist, Mike McGlone said Ethereum “appears to retain its leading platform status” in this emerging market.
The price of Ethereum has increased more than 353% so far this year. but it’s still less than half of its all-time high.
Talk about the future of Ethereum Sonnenshein said the intelligent contract platform “has the same characteristics as bitcoin’s stamina”.