Grayscale Crypto Investment Fund buys 47,000 Ethereum (ETH) in a Single Day
The Grayscale crypto investment fund has bought more than 47,000 ETH at the beginning of February. Their data fillings show that they have also bought more than 12,300 Litecoin. Currently, Grayscale is the only regulated way for investors in the United States to invest in cryptocurrencies.
Grayscale has its “Trust” product, which holds a certain spot crypto amount per share offered to clients. You can either trade it as an OTC (over the counter) product or subscribe to it. So, every time, investors buy the “Trust” shares on an exchange or subscribe to it, the Grayscale investment firm has to buy spot cryptocurrency on the open market for fully backing its publicly traded offering.
As there was a high demand for Ethereum on February 3, 2021, the Grayscale Fund has to spend more than US$76 million to buy over 47,000 ETH. At the time of Grayscale’s purchase, each ETH price was US$1,617. Many analysts suggest that ETH price will rise to US$2,000 per ETH next week and to US$10,000 by the end of 2021.
Ethereum investor Ryan Sean Adams has said:
“Public companies staking ETH, there’s $4.5b ETH in Grayscale, and ETH futures launch on the CME Monday… The institutions are buying ETH. And they’re just getting started.”
Till now, Grayscale has bought around US$24-billion worth of Bitcoin and US$4-billion worth of Ethereum (ETH).