Why does Grayscale hold ETC today (Why doesn’t Grayscale buy Ethereum)?

08/18/2023 18:46 • Tech Trends • 59 views

Why does Grayscale hold ETC today?

According to the official website of Ethereum Classic (ETC):

1. As of June 3, 2020, 14:00 Beijing time, Grayscale’s ETC trust has issued a total value of $20,000,000 worth of ETC.

2. Since October, the Ethereum Foundation has added approximately 4,000,000 ETC to the Ethereum Classic network.

3. Up until now, nearly 70,000 ETC have been staked on the ETC blockchain and sent to the ETH blockchain. This means that miners can convert their block reward from 12.5 ETC to 6.25 ETC.

These funds mainly come from two sources: 1. Grayscale BTC Trust, which is a Bitcoin trust fund supported by Grayscale Investments and Ethereum Classic, with assets under management exceeding $500 million. (Note: Grayscale Bitcoin Trust is an investment tool approved by the U.S. Securities and Exchange Commission).

Why doesn’t Grayscale buy Ethereum

Editor’s note: This article is from 8btc (ID: bitcoin8btc), written by Kyle, and authorized to be published by Planet Daily.

On December 23, according to a report by Bloomberg, Grayscale Investments will no longer buy shares of Ethereum Trust Fund (ETHE). The document states, “Grayscale Investment Company has no plans to sell all of its holdings of GBTC before the third quarter of 2021.”

It is reported that these two types of investment tools provide institutions and retail investors with an opportunity to enter the digital asset field. “Grayscale’s Bitcoin Trust Fund” is currently the only exchange-traded product that supports Bitcoin spot trading. The Grayscale Ethereum Trust Fund focuses on other cryptocurrencies. In addition, Grayscale also stated that “it will allow customers to trade Ethereum derivatives and other securities based on blockchain technology.” Although investors can buy stocks or ETFs from Grayscale, they cannot buy or sell any cryptocurrencies as they do now.

It is worth noting that “if these products are considered to be safe investment products, they should start selling immediately. Therefore, you may see some signs when we have more details about these products,” the Grayscale spokesperson declined to comment.

“We do not consider Ethereum as a higher risk choice,” said the Grayscale spokesperson.

The company recently submitted a document to the U.S. Securities and Exchange Commission regarding its cryptocurrency investments, including its investment in Ethereum. However, the company also clarified that since late October 2019, the value of this asset class has been correlated with Grayscale’s Bitcoin, at which time the price of Bitcoin had soared to a historical high.

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Why does Grayscale hold ETC today (Why doesn’t Grayscale buy Ethereum)?

Why doesn’t Grayscale buy Ethereum

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