Digital asset investment firm Grayscale Investments has announced a $90 million investment in Ethereum Classic holdings, marking one of the most significant cryptocurrency investments by an institutional investment firm.
According to a statement posted on their website, Grayscale believes that certain cryptocurrencies have the ability to “transform legacy systems across nations and industries around the world”, and in doing so “[drive] future economic growth, [by providing] the keys to our digital, global economy.”
A Billion Dollar Portfolio
Of the $1.5 billion or so that Grayscale has invested in digital assets, it is thought that the vast majority, approximately $1.38 billion, of this is in Bitcoin. However, the $90 million that they have invested in Ethereum Classic is still significant.
Entrycoins (the coins which investors purchase with fiat currency to begin trading crypto), in particular, Bitcoin and Ethereum, have been the most popular crypto investment options for traditional institutional investment firms. Ethereum Classic has undergone a dramatic growth over the past year, helped in large part by its ties to Ethereum. Some investors have grown weary of Bitcoin’s notoriously large fluctuations in value, and therefore view Ethereum as a safer asset to hold.
A Sign of Things to Come?
Ethereum Classic, at the time of writing, is trading for $13.22 a coin, a far cry from the $311.16 that Ethereum is sitting at, and nowhere near the $6126.25 mark that Bitcoin is currently circling. However, with the entire market still recovering from the Bitcoin ETF news, and Ethereum Classic being listed on both Robinhood and Coinbase, its price is expected to rise over the coming month. Some analysts are predicting a $20 price point by September.
Grayscale isn’t the only institutional investment firm who have expressed an interest in Ethereum Classic, and often a large investment from one firm can open to gates to investments from others. Just a few investments of this magnitude could pump up Ethereum Classic’s price enough to initiate a prolonged climb.
Who knows? Ethereum Classic might just one day be able to trade on par with Ethereum itself.