Quick take:
- The team at Grayscale has announced that there is great demand for Ethereum investment products
- Grayscale’s Ethereum holdings are close to the $2 Billion mark in terms of value
- The Grayscale Ethereum Trust recently went through a successful 9-for-1 split
- Ethereum is consolidating at the $650 price area with $700 possible if Bitcoin is stable
The team at Grayscale Investments has announced via Twitter that there has been strong demand for Ethereum (ETH) investment products. According to Grayscale, the third quarter of 2020 saw the largest investment into the Ethereum Trust with over $202 Million in inflows. The team at Grayscale provided these facts via the following tweet.
It’s become clear there's strong demand for #Ethereum investment products. In our 3Q20 investment report, we saw the largest investment into Grayscale Ethereum Trust ever, with over $202 million in inflows. Time to #GoGrayscale and invest in $ETHE. https://t.co/lgnBxHZR20
— Grayscale (@Grayscale) December 19, 2020
Grayscale has continued to accumulate Ethereum with their current holdings being a few points shy of the $2 billion value mark. According to Bybit.com, total Ethereum assets under management at Grayscale are valued at $1.94 Billion. This corresponds to 2.94 million Ethereum in the Grayscale vaults with 344,391 ETH of this amount accumulated in the last month.
Grayscale Ethereum Trust Undergoes a Successful 9-for-1 Split
Earlier this month, Grayscale announced that it would be carrying out a 9-for-1 split of the Ethereum Trust on the 14th. Shareholders went on to successfully receive 8 additional shares on the 17th of December. The move was meant to increase the liquidity of the Ethereum Trust (ETHE) as well as make it more affordable. Share splits are often bullish in the sense that they are done to meet the demand of investors.
Grayscale Ethereum Trust (ETHE) Still Trading at a Premium
With respect to the value of the Grayscale Ethereum Trust (ETHE), each share will now represent 0.01031643 ETH as opposed to the earlier amount of 0.09284789 ETH. With the current share split, each share should be worth $6.777 using an Ethereum value of $657.
However, the Grayscale Ethereum Trust closed Friday at a share price of $20.15 which is almost 3 times the Ethereum value it represents.
Ethereum’s Price is Knocking at $700
Switching gear to Ethereum, the value of ETH is confidently trading above the $620 – $650 support area. At the time of writing, Ethereum is trading at $656 in what looks like consolidation for a move in either direction depending on Bitcoin’s next move.
The weekly close tonight is also an important hurdle for Ethereum as it attempts to break the $700 ceiling and into territory last seen in the 2017/2018 bull cycle.