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14th Dec 2020
CryptoAltum Research Team

Institutional Investors Have been Buying Each ETH Coin at $555

In the last month, Grayscale Investors have been ramping up their purchase of Ethereum, buying each at an average price of $555. The digital asset manager is established and is preferred by institutional and accredited retail investors willing to purchase cryptocurrencies compliantly with storage guarantees. Even as Ethereum prices rally, it means the coin is largely undervalued meaning there is more room for the upside.


There is a new breed of “Ethereum only” investors, according to a Grayscale executive. They have been pouring millions into Ethereum trust shares, pushing their total asset under management to over $1.65 billion. In the last month, Grayscale bought over 388k of ETH ($215.7 million) at a time when the network is transiting to Eth2--a solution that once implemented will fix the high transaction fees in the smart contracting network, translating to more utility and upside pressure for ETH. Notably, all Grayscale investorsreceive with each purchase of ETHE is 1 tenth of ETH--often at a high premium of over 120 percent.

Impact on the ETH Price: 

Bullish. Crypto needs institutional investors after retailers have been in charge for a better part, explaining the high volatility. Grayscale is an approved channel for accredited investors and regulated funds to get crypto exposure. Some of them are already gravitating into ETH, preferring the asset over others including Bitcoin in the recent past.

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