Tag: Grayscale Ethereum Trust

Grayscale Tops Up Ethereum Investment To $10 Billion

by NEWSBTC

Ethereum makes up a large part of crypto-asset manager Grayscale’s portfolio. In a recent report, it shows that Grayscale now has over 3 million ETH in its asset under management (AUM), amounting to more than $10 billion. This makes the asset manager one of the largest holders of Ethereum in the space.

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The asset manager had gradually increased its ETH holdings over time, adding almost 20,000 ETH to its portfolio back in February. The recent filings show that the New York-based asset manager has increased its crypto holdings since its last report, which has raised the value of the total assets under management from $33 billion to $41.4 billion.

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Ethereum Is Not The Only Interest

The fund had started out providing a way for investors to invest in Bitcoin through the stock market. But over the years, Grayscale has added more crypto-assets to its offering to provide investors more exposure to the markets. Grayscale’s crypto management spans across a host of cryptocurrencies. Assets in its care range from Bitcoin to Ethereum, Litecoin, Ethereum Classic, and a host of others.

Table showing Grayscale's investment across different crypto products

Table showing Grayscale's investment across different crypto products


Grayscale's Ethereum Trust at almost $10 billion | Source: Grayscale on Twitter

In addition to its $10 billion ETH and $29 billion BTC holdings, Grayscale also holds over $700 million worth of Ethereum Classic and over $300 million worth of Litecoin in its portfolio. The size of its assets under management puts Grayscale as the largest crypto asset manager in the world.

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Grayscale had also dived into the DeFi world back in July when it launched a new DeFi fund. The fund was the first of its kind in the firm’s history but would be the second diversified product fund. This fund was based on the Coindex DeFi Index.

Highest Asset Under Management

Although Ethereum makes up a big chunk of the asset manager’s portfolio, bitcoin remains top of the list. Grayscale’s Bitcoin holdings total over 640,000 coins, which puts the total value at almost $30 billion. Constituting the largest part of assets under management in the portfolio. The asset manager’s Ethereum holdings put ETH as the second-highest holding in its portfolio, following behind bitcoin.

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The trust has also benefitted from the current bull rally that has rocked the market. The price of Ethereum has grown tremendously in just the past three weeks along. Seeing the price of the digital asset come to rest firmly above $3,000, a price point it had not been able to break following the crash from the all-time high of the asset.

The price of Ethereum at the time of this writing is trading above $3,200, with a 0.71% 24-hour price change.

Ethereum price chart from TradingView.com

Ethereum price chart from TradingView.com


ETH price sitting above $3,200 | Source: ETHUSD on TradingView.com

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Ark Investment tips $20M into Grayscale Ethereum Trust

by Cointelegraph

Cathie Wood’s Ark Investment has reported holdings of 639,069 shares in Grayscale’s Ethereum Trust for Q1 — currently worth around $20.9 million at today’s prices.

The news of Ark’s major investment into Ethereum was seen as a bullish sign by Ethereum and DeFi proponents. Mythos Capital founder and Bankless author Ryan Adams emphasized how significant he saw the developments:

“Remember when you told you the institutions would never buy ETH? They keep underestimating this asset. ETH IS MONEY.”

Ether bulls have been growing noticeably more confident recently, with the co-founder of venture capital firm Framework Ventures, Vance Spencer tweeting earlier today:

“There were many times when crypto would not have been strong enough to survive without BTC as the dominant narrative. I no longer believe this is the case. Regime change is coming.”

Cointelegraph reported on May 5 that institutional managers bought $30.2 million worth of Ethereum at the end of April, bringing their total holdings to an all-time high of $13.9 billion.

Despite the excitement around the ETH buy, Ark’s Q1 filing with SEC earlier this month shows the firm’s portfolio still heavily leans in Bitcoin’s favor. Ark reported holdings of 8.6 million shares in Grayscale’s Bitcoin Trust, worth more than $298 million as of today.

Data from TradingView however shows that Grayscale’s ETH Trust has been much more lucrative compared to Grayscale’s Bitcoin trust in 2021.  

The share price of Grayscale’s ETH Trust, or ETHE, has increased by 179% this year, up from $11.70 on Jan. 4, to $32.70 as of today. The share price of Grayscale’s BTC Trust, or GBTC, has increased by a mere 1.7% in the same time frame, up from $33.80 on Jan. 4, to around $34.38 today. GBTC has been trading at a 15-20% discount to its Bitcoin holdings.

Cathie Wood and Ark Investments don’t share the same environmental concerns as expressed recently by Elon Musk and Tesla.

In a May 17 newsletter published by the firm, Ark questioned how well Elon Musk had done his research on the topic, noting that “Tesla’s decision seems to have been triggered by private equity firm Greenidge’s plans to revive a coal power plant to mine Bitcoin.”

The firm highlighted that Greenidge had clarified not only that its plant is powered by natural gas and feeds the grid but also that it bought carbon credits to offset the emissions:

“In our view, the concerns around Bitcoin’s energy consumption are misguided. Contrary to consensus thinking, we believe the impact of Bitcoin mining could become a net positive to the environment.”

According to news outlet Bazinga on May 18, Ark also recently added another 259,897 Coinbase shares to its holdings via the Ark Innovation ETF and the ARK Next Generation Internet ETF — worth more than $62 million at today’s price of around $241.