A lot of attention has been paid to this lately for the enormous accumulation of Bitcoin for the Bitcoin Investment Trust (BIT), Grayscale, the well-known cryptocurrency investment fund, has also aggressively expanded its stake in ether (ETH).
Grayscale’s director of investor relations spoke in a recent episode of the Coinscrum market podcast Ray Sharif-Askary announced that the company bought $ 110 million at ETH in 2020. Until now.
Institutional investors diversify with ETH
As such heGrayscale purchases represent 0.4% of Ethereum’s total market value in the past five months. Sharif-Askary found that over 38% of current grayscale customers Now they have more than one crypto asset. significant over 9% registered 12 months ago
“It is encouraging for investors … to diversify into the digital asset class just like you with any other class traditional good, “he said.
In the same period Grayscale bought Bitcoin (BTC) worth $ 390 million. This corresponds to 0.2% of the market capitalization. The enterprise buys 1.5 times the amount of Bitcoin the one that is being mined.
Grayscale’s Ethereum background explodes
The accumulation of The ETH in Grayscale performed extremely well so far for the shares of the Grayscale Ethereum Trust that increased by almost 800% close with the last registered market for $ 210.
Grayscale Ethereum Trust / USD: TradingView
The fund has briefly tested $ 250 in the last 24 hours. offers annual returns of 995% for investors who bought shares in early January.
Institutions seek protection against inflation amidst uncertainty
Sharif-Askary attributed the massive accumulation of cryptocurrencies in grayscale to this Institutions that want to protect themselves from inflation in response to US monetary policy amid the COVID 19 crisis.
“From a cross-border perspective, COVID-19 and the political implications have created the conditions for Bitcoin to be viewed as a reserve of valuable assets. […] Institutional investors take long active positions in digital assets with our products, because they are looking for a scarce asset that can be used to hedge inflation in a world in which we are exposed. unprecedented monetary resources. “
“We have never seen such demand for our products before,” he added.