Ethereum has skyrocketed to its ATH this bull season before noting a minor retracement to $1,347 at press time. In the latest development for the world’s largest altcoin, Grayscale has reopened its Ethereum Trust to the investors.
This is not the first time that Grayscale has unveiled an opportunity for its Trust to open up prospects to secure more capital for greater adoption. The Trust’s private placement is offered throughout the year but on a periodic basis and according to the latest announcement, it is now available to investors for a daily subscription.
With this development, one of the world’s largest digital asset managers has yet again enabled accredited investors to allocate funds to the firm’s product.
It is important to note that “private placement” works similar to an alternative to IPOs and essentially implies a sale of an asset to a pre-selected number of investors and institutions instead of an open market.
Besides, Ethereum Trust has been the company’s second most-successful product in the 4th quarter of 2020. In its report, Grayscale had previously mentioned that the Trust trailed just behind BTC Trust, expectedly so, with a whopping $342 million.
Ethereum Gaining Popularity Among Investment Vehicles
Seems like February is the month for Ether-focused funds. This can be attributed to the undeniable growing interest of institutional investors in Ethereum. Just recently, the world’s largest derivatives platform, CME Group had announced that it would be launching an Ether-based futures contract in the first quarter of 2021.
Moreover, Mike Novogratz’s Digital Galaxy is all set to roll-out a suite of Ethereum-focused funds to provide institutional-quality exposure to ETH. According to the official document, the fund will invest directly in ETH and will be valued based on the Bloomberg Galaxy Ethereum Index.
The intersection of Ethereum and institutional investors is noteworthy as all the aforementioned products affirm ETH to be a growing digital asset and aim to offer investors exposure to the smart contracts and decentralized application [DApp] that have created waves over the past several years.