Digital asset manager Grayscale added 210,000 ETH to its holdings in under three weeks, valued at nearly $400 million.
According to data from cryptocurrency analytics platform Bybt, Grayscale's Ethereum Trust (ETHE) saw significant growth after reopening subscriptions to accredited investors on February 1, 2021. The trust recorded daily inflows averaging tens of millions worth of ETH.
Grayscale’s ETH holdings rose from 2.93 million coins on February 2 to 3.14 million (≈0.2% of total supply), marking a 7.1% increase in under three weeks.
Data Source: Bybt
The largest single-day acquisition occurred on February 12, when Grayscale purchased 52,730 ETH at approximately $1,770 per coin.
Institutional Shift Toward Ethereum
Beyond Bitcoin, institutional interest is pivoting toward Ethereum—the second-largest cryptocurrency by market cap. Mark Cuban, owner of the NBA's Dallas Mavericks, highlighted smart contracts' disruptive potential during a podcast with The Defiant:
"Smart contracts are revolutionary, reminiscent of the early internet. With just basic coding, they enable frictionless banking—loans and transactions completed in seconds. This innovation could redefine finance."
Cuban noted Ethereum’s advantage over Bitcoin as a store of value, citing its role in fostering decentralized applications. While his portfolio holds more BTC than ETH, he plans to prioritize Ethereum during market dips.
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FAQs
1. Why is Grayscale’s ETH accumulation significant?
Grayscale’s purchases signal strong institutional demand, often influencing market sentiment and liquidity.
2. How does Ethereum’s utility differ from Bitcoin’s?
Ethereum supports smart contracts and dApps, while Bitcoin primarily serves as digital gold.
3. What factors drive institutional interest in ETH?
DeFi growth, NFT ecosystems, and Ethereum’s upcoming upgrades (e.g., Ethereum 2.0) enhance its appeal.
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