Michael Sonnenshein of Grayscale reports strong growth in interest in Ethereum
Bitcoin (BTC) has introduced many investors into the crypto world, but it is Ether (ETH) from Ethereum that, according to Grayscale, is starting to attract more attention.
In a telephone interview with Bloomberg, CEO Michael Sonnenshein explained that 2020 was a year of remarkable growth for the number of „Ethereum only“ investors, highlighting the increased attractiveness outside the development community.
„During 2020, we saw a new group of investors focused primarily on Ethereum and in some cases Ethereum only. There is a growing conviction around Ethereum as an asset class“.
Grayscale manages a number of funds that provide investors with direct exposure to the cryptocurrency market. Although Grayscale Bitcoin Trust remains the most popular fund, the company’s Ethereum Trust product has seen a sharp increase in net inflows.
In the third quarter, weekly inflows to the Grayscale Ethereum Trust averaged $15.6 million. Net investments in the largest Bitcoin Trust averaged $55.3 million per week. Overall, the entire range of Grayscale funds received record inflows at the end of October.
A few days ago, Grayscale announced that its Ethereum Trust will undergo a 9-by-1 split on 17 December, a move that could make the fund more attractive to investors. As reported by Cointelegraph, registered shareholders on 14 December will receive eight additional shares for each share they hold.
An important part of Ethereum’s growing attractiveness is the boom in decentralised finance, or DeFi, applications developed above the blockchain. Mike McGlone, strategist at Bloomberg Intelligence, said Ethereum „seems to maintain its leading platform status“ in this emerging market.
Since the beginning of the year, the price of Ether has increased by more than 353 percent, but remains less than half of its all-time high.
Speaking of the future of Ethereum, Sonnenshein said the smart contract platform „has a similar tenacity to Bitcoin.