Grayscale Ethereum Trust to split shares 9-to-1

Grayscale Ethereum Trust to split shares 9-to-1

Summary: Digital asset management company Grayscale announced on Wednesday that it will split its investment product Grayscale Ethereum Trust at a ratio of 9 to 1 on December 17, which may make the investment product more attractive to individual investors.

Digital asset management company Grayscale announced on Wednesday that it will split its investment product Grayscale Ethereum Trust 9-to-1 on December 17, which may make the investment product more attractive to individual investors.

Grayscale announced in an official press release that holders of the investment product will receive 8 additional shares on top of their current holdings. To qualify, investors need to hold the investment product before December 14.

Grayscale said that the Grayscale Ethereum Trust currently owns 29,502,100 shares, each worth 0.09284789 ETH. After the split, the trust will own 265,518,900 shares, each worth 0.01031643 ETH.

The company said one of the main purposes of the split was to make the fund more attractive to individual investors who might be turned off by excessive market pricing. Grayscale said the split would not affect the fund's future earnings or even its current value.

According to Bitpush, Grayscale has received record capital inflows during this year's bull market in the crypto market, reflecting a surge in investor demand for digital assets. Total investment in Grayscale products in the third quarter reached $1.05 billion, with an average weekly inflow of $15.6 million into the Ethereum Trust. Compared with the average level of the past 12 months, the weekly inflow of funds into the Ethereum Trust has increased by more than 73%.

According to Bitpush data, the price of Ethereum, the second largest cryptocurrency by market value, has seen a significant increase in recent times and has been fluctuating around $600 recently.

The crypto community also has different views on Grayscale’s role in the crypto market. Crypto analyst Pierre Rochard believes that Grayscale’s Bitcoin Trust is a strong entry point for investors to invest in Bitcoin, but he hopes that Grayscale will have more competition.

Another analyst, Dan Held, believes that investors should buy Bitcoin on trading platforms such as Kraken and then keep their own cryptocurrency.