New numbers from the crypto-focused investment firm Grayscale show interest in Ethereum among high-net-worth investors continues to rise.
At time of publishing, the firm’s Grayscale Ethereum Trust has grown to $234 million in assets under management. The trust is backed by Ethereum, allowing investors to gain exposure to the second-largest cryptocurrency without actually buying the asset.
With interest in the Grayscale Ethereum Trust on the rise, the firm has bought 756,539 Ethereum (ETH) worth $145 million on behalf of its customers since the beginning of 2020.
04/24/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $2.7 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/UdNXuBBhr2
— Grayscale (@Grayscale) April 24, 2020
The Grayscale Bitcoin Trust remains the most popular investment product offered by Grayscale, with $2.3 billion in assets under management.
But the company’s Q1 report for 2020 shows inflows into Ethereum outperformed Bitcoin as the quarter came to a close, from March 17th through March 31st.
Ethereum’s transaction volume is steadily rising this year, according to BitInfoCharts. The numbers suggest the leading smart contract ecosystem, which allows companies to easily spin up new Ethereum-based tokens, is thriving.
Ethereum has also emerged as the backbone powering the decentralized finance (DeFi) movement, which is an effort to use the blockchain to remove middlemen from traditional financial services.
The amount of capital in the entire decentralized finance (DeFi) market crossed $1 billion early this year, but that number has since dropped to $780.4 million according to DeFi Pulse.
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