Grayscale buys ETH worth $38M after altcoin touches new ATH
Ethereum [ETH], the second-largest cryptocurrency by market cap, hit a new all-time high earlier today, with the crypto valued at $1,571, at the time of writing. That wasn’t the only notable development in the crypto’s ecosystem, however, since amidst the rising demand for the digital asset, Grayscale revealed that it had added $38 million worth of ETH.
Following the same, Grayscale’s total ETH AUM climbed to $4.5 billion, according to data from crypto-exchange data aggregator bybt.
Source: bybt.com
Grayscale, one of the market’s leading digital asset managers, recently reopened its Ethereum Trust (OTCQX: ETHE) to accredited investors for private placement. In fact, Grayscale’s addition of ETH comes less than a week before the scheduled launch of ETH Futures on the CME.
With the launch of ETH Futures, comes the ability of traders to enter short positions on the cryptocurrency, potentially leading to some short-term volatility. However, this also provides investors the ability to hedge against their spot positions, making ETH a far more attractive investment – especially to institutional investors.
Ethereum’s press time price levels, however, can largely be attributed to new retail investors since new daily addresses created for ETH also hit an all-time high on the charts, according to data from Santiment.
Source: Santiment
The said metric and its inferences were further supported by the fact that invested fiat in ETH is currently at its youngest age since December 2018, indicating that new investments are coming in as older investments are being shuffled.
With the Mean Dollar Age for ETH dropping to levels unseen in over two years, many analysts suggest that a fall in this metric during a bull run has the potential to solidify the fundamentals of Ethereum even further.
OhNoCrypto
via https://www.ohnocrypto.com
Samyuktha Sriram, @KhareemSudlow