Grayscale's Ethereum Trust: Adding Validity To Cryptocurrencies?

May 31, 2019 02:46AM ET 

By (Tanzeel Akhtar/ 

Grayscale Investments confirmed last week that it has gained approval from the U.S.’s Financial Industry Regulatory Authority (FINRA) for its Ethereum Trust to begin trading via over-the-counter (OTC) markets in early June. The fund, which was established in 2017 has, up until now, only been available to accredited and institutional investors for private transactions of $25,000 or higher.

When it launches on the OTC, retail investors will also be able to gain exposure to the fund, which will trade under the ticker ETHE. Grayscale is touting the product as “the first U.S. publicly quoted security solely invested in and deriving value from the price of Ethereum.”

Endorsing Cryptocurrency’s Validity

Many are viewing this latest FINRA approval of another cryptocurrency investment vehicle as reinforcing the validity of the asset class. It doesn’t hurt, of course, that the timing for this launch nicely coincides with the general uptick in the crypto market after the rapid and precipitous declines seen at the end of 2017 and into 2018.

Over the past week, Ethereum, the second most popular digital currency by market cap, had gained 18.33%, before dropping 11.4% in yesterday’s session.