Institutional Traders Favoring Grayscale's Ethereum Trust Over GBTC | ETF Trends

A new report from Crypto Compare reveals that institutional investors are favoring Grayscale’s Ethereum Trust (ETHE) over Grayscale’s Bitcoin Trust (GBTC) for the first time. 

According to the report, ETHE was the most traded digital asset product in September of 2021, averaging a daily volume of $250 million, a 29% increase.  

It was a relatively good month for ethereum market-wise, with ethereum-based products reaching “their highest market share of AUM… at 25.9% – movement that suggests investors are seeking alternatives to Bitcoin for cryptocurrency exposure,” according to Crypto Compare. 

The Grayscale Ethereum Trust currently has $10.9 billion in assets under management and is the first publicly quoted ethereum investment vehicle in the U.S. as well as the second digital asset investment vehicle with SEC reporting status. 

Ethereum Versus Bitcoin 

Michael Sonnenshein, CEO of Grayscale Investments, described the difference between bitcoin and ethereum during Yahoo Finance’s All Markets Summit Plus: Crypto Investing, according to Yahoo! Finance

“Things like bitcoin are inherently built to be a digital form of money or store of value,” Sonnenshein said. “Whereas things like ethereum are meant to be more of a gas to power decentralized applications.” 

This is because ethereum is not just a token (the token, by the way, is called ether, but ethereum and ether are often used interchangeably). Ethereum is also a DeFi platform that allows users to create and run decentralized applications (dapps) and smart contracts.

The most notable difference between bitcoin and the ether token itself is that ethereum has no supply cap — there is no limit (currently) to the number of ethereum tokens that can exist. Bitcoin, on the other hand, has always had a fixed supply of 21 million coins. 

Grayscale currently holds 3 million ether and 654,600 bitcoin, with a total of $47 billion worth of digital assets under management between all of its funds. 

Grayscale continues to add exposure to emerging cryptocurrencies through different investment vehicles. Most recently, the investment company added Solana and Uniswap to its Grayscale Digital Large Cap Fund. Grayscale also offers single asset funds for bitcoin cash, chainlink, filecoin, litecoin, and zcash, among others.

For more news, information, and strategy, visit the Crypto Channel.