Grayscale Investments reported that institutional investors are increasingly asking for exposure to the smart contract platform Ethereum and not Bitcoin.

In an interview with Bloomberg, Managing Director of Grayscale Investments, Michael Sonnenshein, said that before 2020, investors would start overwhelmingly with Bitcoin.

However, in the past 12 months, the second largest crypto by market capitalization has gained a loyal following:

“Throughout 2020, we are seeing a new group of investors that prioritize Ethereum. And in some cases, they just want Ethereum, not Bitcoin. There is a growing conviction around Ethereum as an asset class. ”

Ethereum and not Bitcoin

Grayscale manages more than $ 10 billion in assets in its cryptocurrency portfolio.

While Grayscale's Bitcoin Trust remains the most popular, receiving a weekly average of $ 39.5 million in investments over the past 12 months, the Ethereum Trust has also seen a significant increase.

According to Grayscale's quarterly report, the capital allocation of major players on Ethereum has gone up exponentially.

“Grayscale Ethereum Trust has attracted the attention of a new segment of institutional allocators. During 3Q20, more than 17% of Grayscale Ethereum Trust tickets came from new institutional investors ”, highlights the report.

As the report pointed out, in the third quarter the Grayscale Ethereum Trust received weekly inflows of $ 15.6 million. For comparison, net inflows in the second quarter were $ 10.4 million and those in the first quarter $ 8.5 million.

Ethereum rose more than 360% in the year

Thus, although Bitcoin has witnessed notable annual gains, Ethereum has risen more than 360% in the year. That's because the decentralized financial assets (DeFi) built on Ethereum have gained in popularity.

With the launch of Ethereum 2.0, Grayscale says that, like Bitcoin, the leading smart contract platform has proven to be a resilient asset.

“The development of the asset class continued to solidify. Ethereum has the same lines of staying power as Bitcoin does. ”

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