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Grayscale invested $ 145,000,000 in Ethereum


Figures offered by Grayscale, a renowned cryptocurrency-focused investment firm, show that interest in Ethereum (ETH) among high-end investors continues to rise.

At press time, the firm’s Ethereum Trust has grown to $ 234 million in assets under management. The trust is backed by ETH, allowing investors to gain exposure to the second-largest cryptocurrency without actually buying the asset.

With the growing investor interest in Grayscale Ethereum Trust has invested much more in ETH. Specifically, the company has purchased 756,539 ETH for $ 145 million on behalf of its clients since early 2020.

Despite this, the Grayscale Bitcoin Trust remains the most popular investment product offered by the company, with $ 2.3 billion in assets under management.

Investment increase table in Grayscale products. Source: Grayscale
Investment increase table in Grayscale products. Source: Grayscale

More details on the growing interest in Ethereum in Grayscale investors

Data on the more than 700,000 ETH was obtained in Grayscale’s Q1 report this year. In that report, it is also evident that the entries in Ethereum surpassed Bitcoin as the quarter came to an end, from March 17 to 31.

Therefore, it can be said that Ethereum transaction volume is constantly increasing this year. The latter can be verified by looking at the information provided by BitInfoCharts.

Scale of ETH transactions from January to April. Source: BitInfoCharts
Scale of ETH transactions from January to April. Source: BitInfoCharts

What has fueled this surge in interest in Ethereum?

The fact that Ethereum is thriving has to do with more and more people and institutions recognizing it as the leading ecosystem of smart contracts, as it allows them to create new Ethereum-based tokens.

Additionally, ETH has become the backbone of the decentralized finance (DeFi) movement. The latter refers to a widespread effort to employ Blockchain technology to eliminate intermediaries from traditional financial services.

In an attempt to see the big picture of decentralized finance we will notice two things. The first is that the amount of capital across the DeFi market surpassed $ 1 billion earlier this year, but that number later dropped to $ 780.4 million according to DeFi Pulse.

Thus, it could be said that Ethereum, although it is gaining importance for the achievement of large-scale decentralized finance, this market still has a long way to go to expand as it did at the beginning of the year.

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