Ethereum ETH

FINRA Approves Grayscale Ethereum Trust for Individual Investors, Will ETH Soon Surge Higher?

Avatar Cole Petersen 3 months ago

The aggregated crypto markets have incurred some selling pressure today that has sent Ethereum’s price reeling back nearly 5%, jeopardizing the upwards momentum that the crypto has incurred over the past several weeks.

Despite this, earlier today news broke regarding the approval of the Grayscale Investment’s Ethereum Trust for individual investors. The investment vehicle – which holds ETH – will soon be accessible by all investors after the Financial Industry Regulatory Authority (commonly known as FINRA) approved it for retail investors looking to buy into the trust on the over-the-counter markets.

Ethereum (ETH) Price Drops Over 4% 

At the time of writing, Ethereum is trading down over 4% at its current price of $243, down from 24-hour highs of $255.

It is important to note that Bitcoin’s price action has been largely guiding the overall crypto markets, and its failure to break above $8,000 has led most major cryptocurrencies to drop today.

Despite this, the Grayscale Ethereum Trust may ultimately lead to an influx of fresh capital into ETH, as all investors can now access the cryptocurrency with ease and through traditional investment platforms.

Michael Sonnenshein, the managing director Grayscale Investments, spoke to Bloomberg about the approval of the ETH trust in a recent interview, noting that “the secondary market really opens up the opportunity for any and all investors.”

It is also important to note that the Grayscale Ethereum Trust is currently quite small, with a mere $12.5 million in assets under management. Part of the reason for the size of the fund was due to its inaccessibility, as prior to today’s approval, only accredited and institutional investors could invest with a minimum of $25,000.

Now that the investment vehicle is open to a significantly larger number of investors, it is highly likely that the amount of capital under management will surge.

Could Approval of Grayscale Trust Lead ETH to Surge Higher?

Although Ethereum’s price has dropped this morning, some analysts believe that the approval of the aforementioned trust will ultimately lead ETH to surge higher.

Luke Martin, a popular crypto analyst on Twitter, discussed this possibility in a recent tweet, explaining that he believes it could surge 10-20% higher while looking towards the ETH/BTC trading pair.

“$ETH could get a boost from the @GrayscaleInvest news. As long as price can hold .0314 level I’m looking to ride it 10-20% higher,” he explained.

Although it is a strong possibility that ETH may begin climbing higher as the news spreads surrounding the approval of the Grayscale Ethereum Trust and as traditional retail investors begin pouring money into the fund, it remains unclear as to whether or not ETH will be able to buck the overall market trend and trade in its own way.

Featured image from Shutterstock.
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