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Digital asset manager Grayscale has announced a share split for its Ethereum Trust, a move that could make the fund more attractive to individual investors.
In an official press release, Grayscale announced Wednesday that the division will be rolled out on Dec.17, with record shareholders receiving eight additional shares for each they currently own. To be eligible for the split, investors must be in the share register by 14 December.
Grayscale says the fund currently has 29,502,100 shares worth 0.09284789 Ether (ETH) per share. Following the demerger, the trust will have 265,518,900 shares worth 0.01031643 ETH each.
According to the press release:
“The Trust may create new Shares after the date of this press release and up to the Record Date.”
One of the main goals of a division’s statement is to make the fund more attractive to individual investors who may feel they have been valued off the market. The split does not affect future earnings or even the present value of the fund, which means that its effects are purely psychological.
The asset manager has seen record inflows into its funds, reflecting an increase in demand for digital assets. Total investments in grayscale products reached $ 1.05 billion in the third quarter, with average weekly inflows into the Ethereum Trust reaching $ 15.6 million. Ethereum Trust’s weekly inflows increased more than 73% from the final 12-month average.
Grayscale’s largest Bitcoin Trust recorded an average of $ 80.5 million in weekly inflows during the quarter, compared to a 12-month average of $ 39.5 million.
Enthusiasm for Ethereum is growing following the official Eth2 launch on Tuesday. Phase 0 of the development roadmap kicks off a multi-year update for the smart contracts platform.
The grayscale is positioning itself as a magnet for institutional investments in ETH and BTC during the bull market. On Tuesday, the company announced it will resume its #dropgold advertising to raise awareness of investing in digital assets.
