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Grayscale Purchases 3,347 ETH In The Last 24 hours

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Despite the panic as Bitcoin and the wider market shed billions last week, Grayscale has been on a buying spree, purchasing large amounts of Ethereum (ETH) in particular.

Ethereum Demand Soars

The cryptocurrency fund manager, Grayscale Investments, continues to purchase cryptocurrencies in droves. In the latest one, it scooped up 3,347 Ethereum (ETH) in the past twenty-four hours.

Indeed, at an average price of $1,555, the cash value of Grayscale’s recent purchase sits at well over $5 million. This is one of the largest such ETH purchases for the fund manager in 24 hours.

Moreover, Grayscale now owns 3.17 million ETH, with its namesake fund, the Grayscale Ethereum Trust (GET), having $4.7 billion in assets under management (AUM).

Grayscale launched the GET in response to overwhelming demand from investors, who wanted a mechanism through which to invest in the top-cryptocurrency without direct exposure.

Launched in 2017, the fund is one of the oldest such passive investment vehicles for ETH in the cryptocurrency market.

The Fear Continues

Despite Grayscale’s own ‘bullish’ approach to the current cryptocurrency market, their clients are seemingly more cautious.

According to data from ycharts, the Grayscale Bitcoin Trust (GBTC) saw a negative premium (or discount) over the past few days, as Bitcoin (BTC) dipped to the low $40,000s.

Essentially, this means that its Net Asset Value (NAV) fell below zero, suggesting investors in the fund decided to sell off at least a portion of their holdings.

Accordingly, the market also saw a rise in the value of USDT, with the stablecoin hitting a peak of $1.01 on Mar. 1st. The indication is clear: investors are looking to safeguard their gains in the short-term.

New Highs for BTC & ETH soon?

Nevertheless, overall optimism in the market remains strong. A faction of bullish traders and investors enthusiastically bought the dip over the weekend, with the top cryptocurrency seeing highs above $50,000.

Over the same weekend, banking giant Goldman Sachs revealed it re-opened its cryptocurrency trading desk to service its clients.

Indeed, this surge in demand comes at a time when cryptocurrencies are in short supply on exchanges. Moreover, data show that miners are starting to hold their rewards rather than sell at corrective prices.

If the supply-shortage continues to get deeper, and demand continues to surge, there is only one way the market will go, up.

The post Grayscale Purchases 3,347 ETH In The Last 24 hours appeared first on BeInCrypto.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
BlackRock (IBIT), the Grayscale Bitcoin Trust (GBTC), Fidelity (FBTC), Ark Invest/21Shares (ARKB), Bitwise (BITB), Franklin (EZBC), Invesco/Galaxy (BTCO), VanEck (HODL), Valkyrie (BRRR), WisdomTree (BTCW), Hashdex (DEFI)

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