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Bitcoin (BTC) has attracted many cryptocurrency investors, but it is Ethereum’s Ether (ETH) that is starting to garner more attention, according to Grayscale.
In a telephone interview with Bloomberg, CEO Michael Sonnenshein said 2020 saw a significant increase in “Ethereum only” investors, highlighting the asset’s growing appeal beyond the development community.
He said:
“Over the course of 2020 we are seeing a new group of investors who are first Ethereum and in some cases just Ethereum. […] There is a growing belief around Ethereum as an asset class. “
Grayscale manages a class of funds that provide investors with direct exposure to the cryptocurrency market. While Grayscale’s Bitcoin Trust remains the most popular fund, its Ethereum Trust has also seen a sharp rise in net inflows.
In the third quarter, weekly inflows into the grayscale Ethereum Trust averaged $ 15.6 million. Net investments in the largest Bitcoin Trust averaged $ 55.3 million per week. The Grayscale family of funds saw record inflows at the end of October.
Earlier this week, Grayscale announced that its Ethereum Trust will undergo a nine-by-one split on December 17, a move that could make the fund more attractive to investors. As reported by Cointelegraph, shareholders registered as of December 14 will receive eight additional shares for each share held.
An important part of Ethereum’s growing appeal is the explosion of decentralized finance, or DeFi, applications built on the blockchain. Bloomberg Intelligence strategist Mike McGlone said Ethereum “appears to maintain platform leadership status” in this emerging market.
The price of ether has gained more than 353% since the beginning of the year, but remains less than half of its all-time high.
Speaking about the future of Ethereum, Sonnenshein said the smart contract platform “has the same staying power as Bitcoin”.
