The rally in cryptocurrencies over the past few weeks has been quite remarkable. Although Bitcoin, the world’s biggest cryptocurrency by market cap, has hogged all the headlines, the second-biggest cryptocurrency Ethereum has also delivered significant gains.

Hence, it’s no surprise that shares of Grayscale Ethereum Trust (ETH) (OTCMKTS:ETHE) has also rallied in conjunction with Ethereum.

Key Developments

The Ethereum token went past $1600 each this past week and that resulted in a 30% rally in the Grayscale Ethereum Trust stock as well.

However, that is not the only reason behind the rally in the stock price. Earlier this week, Grayscale Investments made a major announcement with regards to the Ethereum Trust.

The company announced that the Ethereum Trust is now open for investment again for accredited investors. This particular move is going to involve private placements of its shares and Grayscale revealed that this is done at different points throughout the course of the year. For instance, the investment window into the Ethereum Trust along with some of the other trusts was closed in December 2020.

It is easy to see why the Ethereum Trust and the other cryptocurrency trusts operated by Grayscale might be attractive for investors.

It offers a straightforward way in which an investors can remain exposed to digital assets without having to go through the troubles of going to exchanges and then storing it themselves.

As per the latest announcement from the company, the Ethereum Trust held as much as $4 billion in assets as of January 29. Since the underlying asset in the fund is Ethereum, the value of the fund goes up or down according to the price fluctuations in the token.

For retail investors, an investment in the Grayscale stock offers an easier way of being exposed to Ethereum without having to bother about opening an account in an exchange. Investors could do well to keep an eye on the Grayscale Ethereum Trust stock over the coming days.

Disclaimer: We hold no shares of ETHE stock



Post Views:
50



Source link

empty message

empty message

empty message

empty message

empty message