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Grayscale Purchases More Than $74 Million for its Ethereum Trust

Grayscale Purchases More Than $74 Million for its Ethereum Trust


The world wants crypto and Grayscale knows it. After announcing a massive purchase of over $280 Million in Bitcoin last week, Grayscale is now also betting on Ethereum.

According to a report issued by Grayscale to the SEC, the company revealed having purchased 11455 ETH for a total of $74,135,609. The decision follows a terrific year for Ethereum, with the rise of DeFi projects and the launch of Ethereum 2.0 as the leading reasons behind the price rally of its native token, ETH.

Genesis Trading, a US-regulated OTC crypto trading desk founded in 2013, acted as an intermediary to facilitate the token purchase.

Since the sales reported on the most recently filed Current Report on Form 8-K by Grayscale Ethereum Trust (ETH) (the “Trust”), the Trust issued 1,416,300 Shares at varying prices … in private placement transactions exempt from the registration requirements of the Securities Act pursuant to Rule 506(c) thereunder for an aggregate of 131,455. 43747295 Ethereum representing $74,135,609.

The Grayscale Ethereum Trust is a Good (Or The Only) Way For Large Institutions to Invest in Crypto

Grayscale’s purchases of Ethereum tokens are a sign of institutional interest and show how big is the appetite of traditional investors for this emerging market. Unlike a typical exchange, Grayscale’s products are fully regulated derivatives in the United States, making it completely safe to jump in and operate with them.

In Fact the Grayscale Ethereum Trust (ETHE) is advertised by the company as “the only SEC-registered way to invest in Ethereum.”

Investors buy shares in Grayscale’s trusts with a commitment to hold their funds (as shares) for a few months. When the lockdown period ends, they can sell those shares in the secondary market.

Grayscale does not participate in this market and does not buy back its clients’ shares. This market is independent, and Grayscale does not guarantee its liquidity or price stability. Therefore, participants generally tend to earn very lucrative premiums from trading in this market.

Grayscale Keeps Increasing its ETH Stash

The Grayscale Ethereum Trust is the company’s second-largest trust after Bitcoin — which is, in fact, the largest BTC trust in the world, ever. ETH accounts for 13.7% of Grayscale’s total funds, while Bitcoin accounts for more than 82%.

The Grayscale Ethereum Trust is the second-largest crypto trust after Bitcoin. Image: Grayscale

A few days earlier, Grayscale announced the purchase of another 105927 ETH for a total of $62.9 Million. This matches the sentiment of the markets. December was the most bullish month ever registered by the Crypto Fear & Greed Index, so it comes as no surprise that a lot of investors are putting their money on Ethereum and other cryptocurrencies.

Crypto Fear & Greed Index
Evolution of the Crypto Fear & Greed Index. Image: Alternative.me

Considering the greediness indicator and the good performance of GrayScale’s products, some investors could be expecting more purchases from GrayScale, and a little love to the Ethereum markets in the near future.

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