Grayscale reports growing demand for ETH from new investors
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Ethereum is attracting interest from 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 at the end of last week.
Grayscale is a crypto investment company whose crypto trusts allow investors to acquire and hold crypto assets. The company is among the leading institutions with large reserves in Bitcoin. Earlier this month, Grayscale announced the purchase of 7,300 Bitcoins. This was followed by an addition of $140 million Bitcoin to the company’s reserve four days later, on December 4.
The investment company currently has custody of about $10 billion in BTC. But its investors are now looking beyond the Bitcoin, which surpassed its previous record (2017) at the end of last month.
Discussing the growing interest in cryptomorphs, Sonnenshein said the new institutional money is seeing Ethereum as a viable investment. He explained that he had noticed a leaning 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 in itself implies that even large investors see Ethereum as a solid investment.
On the other hand, the price of cryptomeda has risen, mainly due to the growing DeFi sector, which is mainly focused on Ethereum. It is no surprise that cryptomoeda outperformed Bitcoin in 2020. In recent months, the price of Ethereum has risen 360% compared to the 170% increase in Bitcoin.
Although other blockchain projects such as TRON have tried to enter the DeFi space, Ethereum remains the blockchain of choice. In September, Mike McGlone, strategist for Bloomberg Intelligence, noted that Ethereum appeared to be maintaining its status as a platform in the decentralised financial sector.
However, the price of Ethereum is still far from its record low in January 2018. Cryptomoeda is currently trading at $595 – 57. 5% far from its record $1,400.