Ethereum is attracting the interest of new investors, according to Grayscale
According to Michael Sonnenshein, managing director of Grayscale Investments, there is a wave of interest from new investors in Ethereum. Sonnenshein made the comment when speaking in an interview with Bloomberg late last week.
Grayscale is a cryptocurrency investment company whose crypto trusts allow investors to acquire and maintain crypto assets. The company is among the leading institutions with large Bitcoin reserves. Earlier this month, Grayscale announced the purchase of 7,300 bitcoins. This was followed by a $ 140 million addition of Bitcoin to the company’s reserve four days later, on December 4.
The investment firm currently has custody of around $ 10 billion in BTC. But its investors are now looking beyond Bitcoin, which surpassed its previous record (2017) at the end of last month.
In discussing the growing interest in cryptocurrencies, Sonnenshein said that the new institutional money is considering Ethereum as a viable investment. He explained that he had noticed a bias towards Ethereum this year.
In the third quarter of the year, institutional investors accounted for 17% of the new money in their Ethereum fund. This statistic alone implies that even large investors see Ethereum as a solid investment.
On the other hand, the price of cryptocurrency has gone up, mainly due to the growing DeFi sector, which is mainly centered on Ethereum. It is no surprise that the cryptocurrency overtook Bitcoin in 2020. In recent months, the price of Ethereum has gone up 360% compared to Bitcoin’s 170% increase.
Although other blockchain projects like TRON have tried to enter the DeFi space, Ethereum remains the preferred blockchain. In September, Mike McGlone, strategist at Bloomberg Intelligence, noted that Ethereum appeared to be maintaining its platform status in the decentralized financial sector.
However, the price of Ethereum is still far from its record set in January 2018. The cryptocurrency is currently trading at $ 595 – 57. 5% away from its record of $ 1,400.
Published at Mon, 07 Dec 2020 17:00:34 +0000