Grayscale Investments has emerged as a notable figure with significant holdings in Ethereum and ambitious plans to convert cryptocurrency funds into Exchange Traded Funds (ETFs). Arkham, a leading on-chain data platform, has shed light on Grayscale’s Ethereum empire, revealing intriguing details that could reshape the crypto investment landscape. Here are the details…
Grayscale’s Ethereum treasury attracted attention
Arkham’s meticulous analysis of wallet addresses revealed a startling revelation. Grayscale has 2.98 million ETH worth approximately $5 billion. This significant Ethereum trove is distributed across 500 different wallet addresses, solidifying Grayscale’s position as the second largest Ethereum holder on the network. Known for issuing cryptocurrency investment products in the form of funds, Grayscale offers investors an effective way to gain exposure to crypto assets without having to hold them directly.
The Grayscale funds are split over more than 500 addresses, none of which holds more than $30M. This makes the identification process more difficult.
We were able to identify the addresses by analyzing activity and cross-referencing with Grayscale’s publicly reported balances. pic.twitter.com/buKpsUmSJm
— Arkham (@ArkhamIntel) September 1, 2023
One of its flagship products, Grayscale Ethereum Trust (GETH), reflects the company’s significant Ethereum holdings. The trust, which totals $5 billion in assets under management (AUM), fits seamlessly with Arkham’s findings. While Ethereum stands out, Grayscale’s influence extends to a broader spectrum of cryptocurrencies. The company manages mutual fund products for many major cryptocurrencies, including Bitcoin, Solana, Chainlink, Bitcoin Cash, Ethereum Classic, Zcash and DeFi indices. As of September 2, 2023, Grayscale’s total AUM reaches an impressive $21.4 billion.
The battle is on for ETF conversion
cryptokoin.com As we reported, beyond accumulating significant crypto assets, Grayscale is waging a battle to convert its cryptocurrency funds into Exchange Traded Funds (ETFs). This effort aims to bridge the gap between the fund’s shares and underlying assets such as Bitcoin (GBTC) and Ethereum (GETH). These funds faced significant price declines during the crypto market downturn in 2022-2023 due to the lack of a direct conversion mechanism.
Grayscale’s latest victory saw the US Securities and Exchange Commission (SEC) grant approval for the conversion of the Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF. This move is expected to help reduce price discrepancies and attract the attention of a wider audience of investors.
Robinhood’s cryptocurrency assets were also revealed
Recently, Arkham’s data also revealed Robinhood’s significant presence in the cryptocurrency world. The popular US securities and cryptocurrency trading platform ranks as the third-largest holder of Bitcoin (BTC) on the Bitcoin network and the fifth-largest holder of Ethereum (ETH) on the Ethereum network.
