The Grayscale Ethereum Trust (ETHE) is an investment vehicle that focuses on holding digital assets called ETH. These assets are created through the peer-to-peer ETH network, which is decentralized. Investors purchase shares of ETHE, which in turn track the price of ETH. However, investors should keep in mind that there is a high risk of loss.
While Grayscale may not be a household name outside the crypto world, the trust has a strong track record for institutional investors. In September, ETHE was the most actively traded digital asset, generating a daily volume of $250 million. This represents a 29% increase over the same month last year. Moreover, September was a good month for ethereum, with ethereum-based products achieving the highest market share (AUM) among crypto-related products.
However, investors should be aware of the fee structure before investing in ETHE. The fund charges a management fee, which is higher than that of most ETFs. However, the fees associated with trading ETHE funds can be reduced by using a broker or exchange. Additionally, some trading platforms charge a commission or withdrawal fee.
Grayscale Ethereum Trust is a publicly traded investment vehicle, with $10.9 billion in assets under management. This makes it the first publicly quoted ethereum investment vehicle in the U.S., as well as the second digital asset investment vehicle with SEC reporting status. During our interview, Grayscale’s CEO, Michael Sonnenshein, explained the difference between ethereum and bitcoin. Ethereum is not just a digital currency, but also a DeFi platform that enables users to build decentralized applications and run smart contracts.
