According to a Bloomberg report published May 23, 2019, digital currency investment company Grayscale Investments LLC is poised to open its Etheruem Trust to retail investors after receiving approval from the Financial Industry Regulatory Authority (FINRA).
Grayscale Ether Trust Now Open to Retail Investors
Grayscale launched its Ethereum Trust at the pinnacle of the Q1 2018 cryptocurrency bull run.
At the time, the product was geared towards high net-worth individuals and institutional investors for a minimum $25,000 private purchase was necessary as a barrier to investment.
Now, FINRA has approved the firm’s Ethereum Trust to trade in a secondary-market which provides an opportunity to small-scale and retail investors to purchase the trust’s shares via over-the-counter (OTC) services. With these shares, investors can gain direct exposure to the price movement of ether (ETH) without having to worry about buying, storing, and safekeeping it.
Michael Sonnenshein, the managing director of Grayscale Investments, told Bloomberg:
“The secondary market really opens up the opportunity for any and all investors.”
The New York-based investment firm currently manages assets worth $12.5 million under its Ethereum Trust. The Trust’s share which trades under the ticker ETHE is equivalent to approximately one-tenth of an ether. The report adds that the product’s trading volume will not be disclosed until it is approved by the Depository Trust Company (DTC.)
For the uninitiated, DTC is the world’s largest securities depository which currently holds over $35 trillion worth of securities. Being the largest, it is also the most trusted institute in the space with a vast network of clearing firms from across the world. It is expected that the depository will approve Grayscale’s Ethereum Trust soon.
With that said, it’s worth noting that the news failed to have any sort of impact on the price of ether. At the time of writing, the second largest cryptocurrency by market cap was trading at $244, down 3.44 percent in the past 24 hours.
Grayscale Goes after Retail Inclusion
Although the crypto market was dominated by the bears for the majority of 2018, the recent positive shift in investor sentiment has reignited general interest in the emerging asset class.
The increasing number of institutions foraying into the crypto space has resulted in the birth of a new found confidence that seems to be steadily trickling down to small-scale investors.