Grayscale Investments, a New York-based digital asset management firm founded by Digital Currency Group in 2013, has reportedly purchased nearly half of the total supply of new ether (ETH) so far this year, in relative terms.
As first calculated by nootropicat on Reddit, the Grayscale Ethereum Trust (ETHE), a publicly-traded fund that tracks the price of ETH, has purchased just under 756,540 ETH since December 31, 2019. This represents roughly 48.4% of the total ether mined in 2020.
The buying corresponds to a dramatic rise in the number of outstanding shares for the fund as Grayscale experienced record inflows in the first quarter. ETHE has added some 8 million new shares this year, bringing the total to around 13.27 million as of April 27.
Currently trading for $96, each share represents around 0.09425 ETH (~$18.36) at present, meaning the shares are trading at a 423% premium. This represents a major bump from the 220% premium investors were paying back in February.
The notable premium suggests Grayscale’s Ethereum offering continues to be one of the most popular ways for mainstream investors to participate in the cryptocurrency market without having to buy crypto directly.
Interestingly, ETHE is up around 283% this year compared to ETH’s 43.4% rise.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.