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Grayscale digs into ETH aggressively

Grayscale investments, crypto fund manager, has been in the light about the BTC accumulation but it turns out it is not only focusing on Bitcoin but ETH as well.  So far, it has purchased up to 22% of Ether in 2020 which is an equivalent of $110 million.

From the recent Coinscrum markets podcast, the director of Grayscale investor relations Ray Sharif-Askary made is clear that the firm has purchased ETH worth $110 million in 2020.

Diversification strategy

So far, the amount of ETH purchased by grayscale is an equivalent of 0.4% of the total market cap of Ethereum for the past five months. Sharif revealed that more than 38% of Grayscale clients have more than one crypto asset, and the percentage has risen by 9% in the last year.

Due to the volatility in the crypto market, many investors are going for diversification as a strategy to hedge them. Just like traditional assets, it makes sense for investors to opt for the different digital currency asset class.

Grayscale got so much popularity for purchasing Bitcoin at an aggressive rate of 1.5 times the total quantity of the new Bitcoin being mined. That equates to $390 million, which is the same as 0.2% of the market capitalization.

Ether dramatic rise

Grayscale’s Ether accumulation is at par with the year to date (YTD) performance of shares in the Grayscale Ethereum Trust, which marks an almost 800% gain, as the last trade of the market closed at $210.

In 24 hours, the trust did a test for $250, offering a YTD return of 995% for investors who bought shares beginning of the year.

Inflation hedge

Sharif-Askary confirmed that Grayscale has had an enormous accumulation of crypto in response to institutions looking for a hedge fledge against inflation according to the US monetary policy during the COVID-19 crisis.

According to her, The US monetary policy and the Covid-19 pandemic have put Bitcoin in the limelight as a store value asset. Institutional investors are making that long-term move to invest in digital assets through Grayscale. Institutional investors are keen on scarce products to act as an inflation hedge in the highly volatile market. She added that this is the all-time high season in demand. Their demand has never reached that level before.

Although some investors are adamant about Bitcoin, it looks like it can make a good long-term solution.

Image by WorldSpectrum from Pixabay.



Marcia is a real crypto fan, specialized in bitcoin and NFT news.


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