update 18 August 2021

Grayscale Investments Bought About 50% of all ETH Mined This Year

There has been a considerable growth in investors’ interest for Ethereum. With such growth it means investors are willing to pay a high price towards the diversification of their portfolio.

This helps them in utilizing an investment vehicle that meets regulatory requirements, neutralizing part of the risks that come with more traditional means of investing in cryptocurrencies.

The asset management company known as Grayscale Investments has claimed the purchase of about 50% of all of the Ethereum mined this year. Grayscale Investments has recorded a remarkable increase in institutional investment.

The company’s report noted the purchase of 48.4 percent of all the Ethereum mined in 2020. According to Redditor u/nootropicat, the company had 13,255,400 outstanding shares at 0.09427052 ETH per share. They have issued only 5,230,200 shares.

Almost 50 percent of Ethereum purchased shows that the company is interested in Ethereum as well as other cryptocurrencies. This is such that the company has increased its investment in 2020.

In the first quarter of this year, the company recorded the best performance as it raised over $500 million which is 83 percent of the aggregated capital raised throughout last year.

The company’s Q1 2020 report reveals some exciting information regarding institutional investments this year. At the moment, hedge fund investments are dominating the market, with total institutional investment being 88% of all investments.

The value of assets managed by the company’s Grayscale Bitcoin Trust (GBTC) in recent times was $2.33 billion. Reports have it that investors purchased Ethereum through Grayscale Investments’ Ethereum Trust (ETHE) at a premium more than 500%.

The value of each share in the trust is 0.09427052 ETH (close to $18.50 at press time) and investors bought each at approximately $90, which is about five times the price. It represents more than 200 percent increase in premiums in February.

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Source: Cryptopress.