With the rise of cryptocurrencies like Bitcoin and Ethereum, more and more traditional institutions are starting to invest in this emerging asset class. One popular way for institutions to get exposure is through grayscale trusts like Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE). These trusts allow accredited investors to gain exposure to cryptocurrencies without having to directly hold the assets.
Recently, several notable institutions invested in ETHE in Q1 2021 according to on-chain data. This suggests continued growing institutional demand for crypto exposure. The institutions mostly have existing exposure to crypto through GBTC, and are now expanding into ethereum.
Rothschild Investment purchases $9.15 million of ETHE
Rothschild Investment, a global financial advisory firm founded in 1908, purchased 265,300 shares of ETHE in Q1 2021 currently worth about $9.15 million. This adds ethereum exposure to complement its existing crypto investments.
Emerald Mutual Fund buys $3.93 million of ETHE
Emerald Mutual Fund Advisers Trust, a large advisory firm managing $3.05 billion in equities, holds 114,100 shares of ETHE worth around $3.93 million presently. This is part of its broader interest in crypto as an alternative asset class.
Smaller institutions like Formidable and Next Capital also invest in ETHE
Additionally smaller firms like Formidable Asset Management, Hellman Jordan Management, Edge Wealth Management, Next Capital Management, and others also purchased anywhere from $25,000 to $131,000 worth of ETHE in Q1 2021. This demonstrates wider institutional fascination with crypto investments.
In summary, major financial institutions across the spectrum invested over $110 million into the Grayscale Ethereum Trust in the first quarter of 2021. This follows the trend of such institutions getting exposure to crypto through trusts like GBTC, suggesting continued mainstream interest.