The institutional company is known for the heavy Bitcoin buys, and now, it seems that the institution is shifting some attention towards ETH. The asset management company has influenced some changes in the crypto space with its heavy waves of purchases. Last year, Grayscale bought assets multiple times that year, with millions worth of cryptocurrency coming in as its trading volume.
This information shows that the management company handles a bulk of the volumes coming into the digital assets industry. Now, with its new Ethereum purchase, that act could cause a price surge, which has occurred numerous times before. The asset management company currently has over 3 million Ethereum in its portfolio with its new purchase.
Grayscale buys over 50,000 ETH in a day
The current institutional demand for the altcoin could have necessitated the institution’s new movement. Many investors are shifting focus from Bitcoin alone and getting interested in the world’s second digital asset, Ethereum. ETH’s outstanding performance late last year and early this year shows that it can stand the test of time, even against the king coin.
The crypto management company bought the 52,730 ETH for over $93 million within a day. The company has made heavier buys in the past, but other forces could have driven its multi-million buy. The company’s ETH is holding now worth over $5 billion with a total of 3.13 ETH under management.
Sources got the recent Grayscale purchases from bybt.com, a data company that specializes in crypto-related issues. The firm shared that Grayscale bought more than 100,000 ETH in the past week due to the digital asset’s continuous rise. Interestingly, ETH is currently worth over $1,700 and has around $200 billion in market cap, showing a large shift from last year’s cap.
The new price gains caused the hefty market cap, and experts suspect that the digital asset would still see more gains. The world’s largest crypto asset manager also bought over 30,000 LTC alongside its Ethereum purchase. It’s safe to note that the firm’s Litecoin asset is worth over $250 million under management.
Grayscale’s contribution to the crypto market
Grayscale is a continuously evolving company that now has interests in altcoins, especially those showing continuous gains like Ethereum and Litecoin. Litecoin’s performance in the past weeks has impressed numerous investors due to its price jump by almost 20% within those days. Although Ethereum remains the largest altcoin, LTC is not doing badly as it now has $12 billion as its market cap with the new price surge.
Grayscale has been talking about Ethereum 2.0 in the past few days, and this could show that the firm believes that the new platform’s launch would jump the crypto’s price. Since February began, the Ethereum network has some scalability and transaction fee issues linked to the heavy DeFi projects within the network that has worsened its traffic and skyrocketed the gas fee.
The asset company’s largest asset is Bitcoin, even with its continuous accumulation of other digital assets. Sources explained that the company is yet to make any new BTC buys, but the premium coin accounts for over 70% of its crypto assets.