Michael Sonnenshein, Managing Director of Grayscale Investment LLC has noted that Ethereum is becoming the preferred investment choice of a large number of the institutional Bitcoin firm’s client-base.
While many people have difficulties finding the best cryptocurrencies to invest in, Michael Sonnenshein, the managing director at Grayscale Investment LLC, has a new revelation that could help investors and traders who are looking for new cryptocurrency investments. Sonnenshein admitted that although Bitcoin has been the key target for many investors, a rising number of people are showing interest in Ethereum during this year.
Grayscale Investment LLC is a crypto investment firm and is owned by Digital Currency Group, which is also the parent company of CoinDesk media outlets.
In a recent interview with Bloomberg, Sonnenshein said that the year 2020 has seen a new group of investors who focus on Ethereum only. He said:
“There’s a growing conviction around Ethereum as an asset class. The development of the asset class has continued to solidify itself. Ethereum has along the same lines of the staying power Bitcoin has.”
If many investors give more attention to Ethereum, then the interest would be for completely different reasons. Since June this year, Ethereum has become more popular among investors partly due to DeFi ecosystem and the launch of Eth 2.0’s Beacon Chain.
While Bitcoin has been considered an emerging asset class, blockchain technology strives to function as the “world computer”, which offers an inclusive ecosystem for decentralized applications.
There have been various opinions on whether Ether could become a major competitor to Bitcoin as an asset class.
Vishal Shah, founder of Alpha5 crypto derivatives exchange, said:
“Ether benefits from spillover and likely has more conversation around it from crypto-natives. For the uninitiated, [it is] hard to see how bitcoin is not the sole on-ramp.”
Raoul Pal, co-founder and CEO of financial media group Real Vision said:
“I’ve always thought this digital asset space is huge – and it’s not just Bitcoin – because there are going to be different applications for different things […] I think of the two [Bitcoin and Ether] as having a very nice combined asset allocation.”
Why Ethereum Has Made Huge Gains
As Ethereum google searches rival that of Bitcoin, this does not imply that Ether transactions are surpassing Bitcoin. Search volume is a major indicator of what has momentum and is indicating signs of growth. It may correspond to people showing a lot more interest and buying Ethereum because the cryptocurrency is the hegemonic leader in the field of decentralized applications (dApps). The dApps market has immensely attracted many people and is expected to grow in the future. This could be another reason why people seriously consider Ethereum for the future.
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