Grayscale Ethereum (ETHE) Risen 4%. What Caused The Stock To Spike?

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.
  

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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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