- Greyscale Investments’ Ethereum trust will be open to individual investors
- This will be after they receive secondary market approval
- The trust has $12.5 million in assets under management so far
Cryptocurrency investment is certainly on the rise and this has seen great progress in several aspects, particularly institutional investment which is much needed for mainstream crypto adoption. From bitcoin and ethereum indices being listed on NASDAQ to major firms such as JP Morgan dipping their toes in the crypto waters, everyone seems to want to get in on the crypto action.
The latest of these developments were announced on May 23, 2019, on Grayscale Investments LLC stated that ether Investments on their platform will soon be open to individual investors as soon as they have received secondary market trading approved.
Retail investors are coming
The Grayscale premium trust was first launched in 2017 when cryptocurrency was at its peak price. Initially, it was only available to accredited and institutional investors and also carried a hefty minimum investment figure of $25,000 through private purchases. This meant that smaller and individual investors could not invest in it but now it seems to be opening its doors to everyone. Small investors can buy shares in the trust through the over-the-counter market after it gains approval from the Financial Industry Regulatory Authority.
“The secondary market really opens up the opportunity for any and all investors,” Michael Sonnenshein, managing director of New York-based Grayscale Investments,” said a representative for the firm in a phone interview.
This is significant because it opens up for investment in the Greyscale trust to people at all levels. There is currently a lot of emphasis on large institutional investors and in the middle of that, it is possible to leave behind smaller investors who also contribute towards the crypto ecosystem. By doing this, this class of investors is also able to take part and as such, more funds are flowing to the industry. Keeping this investment open to smaller investors also works in the spirit of cryptocurrency which has, from its inception, been a very community-minded industry.
Eligible for 401k
The Greyscale Trust currently has $12.5 million in assets under management. Each share in the trust is treated as ETHE which is worth about one-tenth of an ether. However, no trading volume will be available until the shares are DTC and then investors who have held shares for over a year will be able to sell them over-the-counter. Ethereum Classic and bitcoin trusts already have secondary market trading and are eligible for holding by investors in IRA 401k and brokerage account funds.