In the previous session, Grayscale Ethereum Trust (ETH) (OTCQX: ETHE) stock closed up 4.40 percent to $21,120. Over the course of the session, the stock traded from $20.900 to $21.990, while 8.05M shares were exchanged during the session.
How the entity operates:
A key player in the digital currency asset management market, Grayscale Investments is the sponsors of Grayscale Ethereum Trust (ETH).
- As of February 12, 2021, Grayscale Investments was managing more than $37.8B of assets.
- Through the digital currency asset class in its portfolio in shape of traditional securities, Grayscale Investments gives investors the ability to gain exposure to the cryptocurrency asset class.
- With ETH, investors have direct access to Ethereum through a single, passive investment vehicle, without needing to buy, store, and safekeeping Ethereum directly.
- ETH has assets under management (AUM) in excess of $4 billion as of January 29, 2021, and each share of it is represented by approximately 0.01027553 of Ethereum.
- Shares are sold in private placements and become eligible to be offered on the public market after an initial holding period of a year.
- Though investment in the shares isn’t an actual investment in Ethereum, the shares are intended to give investors easy access to the digital currency.
What drove the stock?
ETH continued the rally on Thursday that has started on Wednesday when its stock risen by nearly 5% after the announcement of the expansion of Greyscale Investments’ leadership team with three new C-suite hires.
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