Grayscale the Bitcoin (BTC) devourer, soon to be the Ethereum (ETH) ogre? Ethereum is no longer just useful to developers, investors are starting to recognize it as an asset class. The Ethereum Trust Fund has performed well this year although the Bitcoin Trust Fund still has a good lead.
Ethereum is no longer the preserve of developers
According to the statements of a manager of Grayscale, Michael Sonnenshein, Ethereum is increasingly popular with the general public and investors.
In a December 4, 2020 interview with Bloomberg, Sonnenshein indicated that his company had seen a significant increase in investors Ethereum only during the year 2020.
These investors are convinced thatEthereum has its place as an asset class, underscoring its growing appeal beyond the developer sphere.
The Bitcoin Trust Fund of Grayscale remains the company’s most popular fund. TheEthereum Trust Fund also saw a strong inflow of cash.
Interest in Ethereum is linked to the explosion of DeFi applications. The analyst of Bloomberg, Mike McGlone, had mentioned thatEthereum consolidated its position as a leading platform in this market.
Investor confidence in Ethereum
During the 3rd quarter of 2020, the weekly cash inflows of ’Ethereum Trust averaged $ 15.6 million.
For the Bitcoin Trust Fund, investments reached an average of $ 55.3 million per week.
At the beginning of December 2020, Grayscale had announced a division ofEthereum Trust according to a ratio of 1 to 9.
Shareholders will receive 8 additional shares for each share held.
The course ofEther has grown by almost 353% since the start of 2020, although it is currently less than half its ATH.
Sonnenshein believes that like Bitcoin, Ethereum has the potential to win over the long term.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Investors understand the financial flows, but will they come to understand the full implications of the Ethereum 2.0 launch? The value of Bitcoin is largely based on its scarcity and the inability to manipulate its supply. Ethereum’s value is based on its utility. Investors should therefore be aware of all the elements that contribute to improving the processing capacity of the network or any additional functionalities brought to the management of its smart contracts. What if ETH developers were ultimately the best Ethereum only investors? Too purists to care about money?
Litecoin, welcome in the Silver Age