Grayscale Capital Offers Retail Investment in Ethereum (ETH)
The asset is considered one of the most liquid, leading to a decision to open the fund to small-scale investors.
Grayscale Capital, Inc. has decided to add an option for small-scale Ethereum (ETH) investments, thus opening one of the best gainers of 2019 to the wider public. While Ethereum has seen criticism based on its failure to build a smooth-running global computer, it remains one of the most liquid digital assets.
Grayscale will open its ETH investment vehicle to the secondary market after receiving regulatory approval, reported Bloomberg. Grayscale Ethereum Trust shares received trading permission from the US Financial Industry Regulatory Authority (FINRA) and will start circulating within two weeks under the ETHE ticker.
"The secondary market really opens up the opportunity for any and all investors,” said Michael Sonnenshein, managing director of Grayscale Investments.
The ticker is already listed under the Pink Sheet rules on the OTC markets, as an investment product with a lower level of regulation and reporting. The Grayscale funds do not require any digital asset delivery when ETHE shares are bought and each ETHE share equals 0.1 ETH, worth about $23.38 at current ETH market prices.
The Ethereum trust manages $10.7 in funds, allowing indirect ownership into the second biggest digital asset by market capitalization, and is just one of the 10 funds managed by Grayscale. Initially, the Ethereum Trust was only available to accredited investors, with a minimum threshold of $25,000.
ETH traded at $244.09 during the latest market setback, although the asset managed a significant climb in the past weeks. ETH ownership is generally accessible to all, although the Grayscale Trust may allow non-technical users to bet on the price risk, without getting exposed to custody risks.
The Ethereum Trust shares are eligible to be held as part of US pension plans, 401Ks, as well as IRAs or general brokerage accounts. Holders of shares in the funds will also be able to sell them over-the-counter. The Ethereum Trust for Grayscale was part of the expansion to new assets. ETH investments were added at the end of 2017, during the market peak, when ETH prices rose close to $1,200.