Grayscale says for the first time new investors are moving beyond Bitcoin and looking for Ethereum. Institutional investors currently see ETH as a sound crypto investment, as said by Michael Sonnenshein, managing director at Grayscale Investments LLC. In fact, ETH had even outperformed Bitcoin in the U.S. market alone.
New Group of Investors Interested In Ethereum
In a recent interview with Bloomberg, Michael Sonnenshein, Managing Director at Grayscale Investments said that the growth of Ethereum investors has increased significantly during 2020. This signifies that conventional investors have started accepting ETH as an asset class.
Sonnenshein stated in the interview:
“Over the course of 2020, we are seeing a new group of investors who are Ethereum-first and in some cases Ethereum-only. There’s a growing conviction around ETH as an asset class. The development of the asset class has continued to solidify itself”
Sonnenshein also said that ETH in comparison to Bitcoin has been able to attract institutional investors. He went on to add that the ETH is not just a currency for the coders but has gained significant attraction from that of Wall Street giants.
New Investors Hopeful Towards ETH Not BTC
Grayscale’s report suggests that 17% of their new money came from new investors for its Ethereum trust in the third quarter of 2020. This only indicates that new investors have turned their heads towards Ethereum and not Bitcoin.
The board member of the $12 million investment fund further added in the interview:
“Ethereum has along the same lines of the staying power Bitcoin has.”
Even though Ethereum’s all-time price of nearly $1400 is far away from its current price of $600, investors are still hopeful towards the world’s second-largest cryptocurrency by market capitalization. Even with the volatile crypto market conditions, both old and new investors are prepared for the massive price swings for long term gains.