Grayscale Investments has emerged as a prominent figure with ambitious plans to convert key assets in Ethereum and cryptocurrency funds into Exchange Traded Funds (ETFs). Arkham, a leading on-chain data platform, has revealed intriguing details that could reshape the crypto investment landscape by shedding light on Grayscale’s Ethereum empire. Here are the details…
Grayscale’s Ethereum treasury attracted attention
Arkham’s rigorous analysis of wallet addresses revealed a startling revelation. Grayscale has 2.98 million ETH worth approximately $5 billion. This important Ethereum treasure is distributed to 500 different wallet addresses, solidifying Grayscale’s position as the second largest Ethereum owner in the network. Known for launching 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, the Grayscale Ethereum Trust (GETH), reflects the company’s substantial Ethereum holdings. The trust, which totals $5 billion in assets under management (AUM), fits seamlessly with Arkham’s findings. While Ethereum is gaining prominence, Grayscale’s influence spans a broader spectrum of cryptocurrencies. The company manages mutual fund products for several 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.
Fighting for ETF conversion
As we reported on cryptokoin.com, Grayscale, beyond accumulating significant crypto assets, is fighting a battle to convert crypto funds into Exchange Traded Funds (ETFs). This effort aims to bridge the gap between fund shares and core assets like Bitcoin (GBTC) and Ethereum (GETH). These funds faced significant price drops during the downturn of the crypto market in 2022-2023 due to the lack of a direct conversion mechanism.
Grayscale’s recent victory saw the U.S. Securities and Exchange Commission (SEC) give approval for the Grayscale Bitcoin Trust (GBTC) to be converted into a Bitcoin ETF. This move is expected to help reduce price discrepancies and attract a wider investor base.
Robinhood’s crypto assets also appeared
Recently, Arkham’s data also revealed Robinhood’s significant presence in the cryptocurrency space. 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.
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