Grayscale Ethereum (OTC:ETHE) has made a name for itself as a cryptocurrency stock focusing on Ethereum (ETH-USD), much as the name suggests. But it gained ground in Monday afternoon’s trading as it made an important pivot that should help it catch more interest and manage more cryptocurrency assets. Grayscale moved to convert its operations from a trust to an exchange-traded fund (ETF) focusing on Ethereum spot trades.
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To accomplish this, Grayscale has filed for approval with the Securities and Exchange Commission (SEC) in the U.S. and also got together with NYSE Arca to establish the fund. Currently, Grayscale is the largest Ethereum investment vehicle around, as it manages nearly $5 billion in assets. That’s roughly 2.5% of all Ethereum currently in circulation.
Currently, Grayscale invests in Ethereum-based futures contracts. But with the move, it will be able to invest directly in Ethereum itself. Grayscale’s CEO, Michael Sonnenshein, offered comment on the move, noting that this was an “…important moment to bring Ethereum even further into the U.S regulatory perimeter.” It’s been said before that only institutional investment will truly allow cryptocurrency to take off, and making an Ethereum ETF should work nicely to pull some institutional dollars.
What is the Future of Grayscale Ethereum Stock?
The future of Grayscale Ethereum is uncertain at the moment as it mainly relies on the price movements of the underlying asset. Nevertheless, a look at the last five days in trading for Grayscale Ethereum stock shows that it’s making headway upward. While early in the period, it saw a clear decline, it recovered those losses within a few hours of trading and started a ramp-up. It’s been continuing that ramp-up for most of the last five days, following a moment of near-vertical rise today and a loss of much of that gain over Monday’s trading session.
