Grayscale, the world’s largest cryptocurrency asset management firm, bought more than 365,000 Ethereum in the last 30 days amid growing interest from institutional investors. Additionally, the company accumulated more than 14,000 Bitcoin during the same period.
According to the data compiled by crypto analytics company, Bybt.com, Grayscale now has more than $12 billion in digital assets under management including 2.94 million Ethereum and 561,000 Bitcoin. The total value of ETH holding of Grayscale now stands at around $1.74 billion.
Bitcoin is the largest holding of the crypto management firm with a total valuation of more than $10.7 billion. Despite the dominance of BTC, ETH has reported a significant rise in Grayscale’s crypto portfolio.
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Michael Sonnenshein, Managing Director at Grayscale Investments expressed his views about the rising interest in Ethereum during an interview with Bloomberg. “Over the course of 2020, we are seeing a new group of investors who are Ethereum-first and in some cases Ethereum-only. There’s a growing conviction around ETH as an asset class. The development of the asset class has continued to solidify itself.”
The recent accumulation shows that institutional investors are now considering ETH as a strong competitor of Bitcoin as an investment tool. Ethereum has always been considered as a technology-focused project by the crypto community, but the official introduction of Ethereum 2.0 with the launch of Beacon Chain attracted a lot of institutional investors towards ETH staking. In terms of price, Ethereum performed better than Bitcoin this year and gained more than 300% since the start of 2020. Despite the growing interest in Ethereum as an investment tool, there are still many challenges around the ETH Network. The Co-founder of Ethereum, Vitalik Buterin expressed his concerns regarding the security of crypto wallets including ETH wallets. He mentioned that the cryptocurrency wallets are not ready for mass adoption.
Ripple CEO earlier mentioned that BTC will remain as a dominant player in the crypto market.