The total value of Grayscale Ethereum Trust has reached over $9.3 billion today as the second largest continues its bullish momentum throughout the week. Grayscale’s private crypto investment funds have become quite popular among investors in the absence of regulated crypto investment vehicles for institutions. The Grayscale Bitcoin Trust is one of the largest crypto funds and now as the demand for Ether is soaring so does the Grayscale trust for the cryptocurrencies.
Ether ($ETH) is currently in the beast mode, peaking to new all-time highs for 4 days out of the past five days and currently trading at $2,928 after setting a new ATH of $2,955 earlier today. The second-largest cryptocurrency by market cap bounced back stronger than ever from the past week’s correction mayhem which saw many altcoins dip by over 30%.
Ether is just another rally away from breaching the $3,000 mark just a month after many called for its doom. Last month the rising gas fee problem of the Ethereum network has made it nearly impossible to use for many defi protocols leading the way for many centralized alternatives like Binance Smart Chain (BSC). However, it seems the approval of EIP-1559 and rising demand among institutions and the popularity of Defi have propelled it over the short-term gas fee issue.
ETH Demand on the Rise Among Institutions
At the start of the bull run, Bitcoin was the sole digital asset under the radar of institutions seeing it as a store of value. However, as the bull run has progressed institutions have started exploring digital assets beyond Bitcoin and Ethereum has emerged as a most potent choice especially with the success of the Defi ecosystem and the upcoming launch of ETH 2.0.
The likes of JP Morgan which had deemed Bitcoin as a fad a couple of years ago now see great potential in Ethereum having already offered a Bitcoin Trust. A recent paper published by the banking giant has lauded Ethereum for the depth of the market and might invest in the same.