Grayscale Ethereum Trust Crosses $1B in Assets Under Management

News / 06.11.2020

Grayscale Ethereum Trust has announced reaching the milestone of over $1 billion in AUM (Assets Under Management). It’s the first publicly quoted $ETH investment product in the US. Recently, trust has also become an SEC-registered reporting company following Grayscale Bitcoin Trust.

Grayscale Ethereum Trust

The company’s share $ETHE  has been currently trading at $60 and derives its value solely from the cryptocurrency Ether. As of now, each share of $ETHE is backed by 0.08603465851 of a single unit of Ether. Although it keeps fluctuating, largely, it’s rising since March this year. Investing in the trust’s share enables investors to gain exposure to ETH in the form of security. With Grayscale’s Ethereum Trust, investors can earn a yield without having to deal with the challenges of safeguarding their private keys and managing a wallet.

The cost of convenience

Basically, it’s a way for investors to invest in cryptocurrencies through the traditional investment vehicle. However, this convenience comes with a cost. Unlike holding your funds in a wallet, Grayscale Ethereum Trust shares come with an annual fee of 2.5%.

The firm’s record-breaking growth

The rise of trust’s assets under management directly correlates to the increased interest in the investment firm’s shares. Lately, the company’s other crypto derivative investment product, Grayscale Bitcoin Trust, is also seeing great interest. Recently, The investment firm comprising several crypto-derivative investment products announced another record-breaking growth for Q3 2020. These investment products include Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), Grayscale Bitcoin Cash Trust (BCHG), Grayscale Litecoin Trust (LTCN), and Grayscale Digital Large Cap Fund (GDLC).

In the last quarter, the Bitcoin trust witnessed over $750 million worth of investments. Thereby absorbing a whopping 77% of all the bitcoins mined during the quarter. Not just Bitcoin-based, even the firm’s altcoin based derivatives witnessed a massive 1400% quarter-over-quarter increase.

Narender is a digital nomad & crypto writer. He's currently living in this small Himalayan village with a perfect balance of wilderness and an LTE network. His love for Chai and mountains precedes everything. Often wonders about things like, "why $1 earned through leverage feels 100x better than $1 earned selling your time?"