Grayscale Plans to Split Ethereum Trust Stocks Worth $1.6 billion

December 3, 2020 1:48 PM UTC

The US-based digital asset management firm Grayscale has announced to split its Ethereum Trust shares. As of now, there are over 29,502,100 shares worth 0.09284789 ETH per share. After the share splitting, the Ethereum trust will have 265,518,900 shares worth 0.01031643 ETH. 

According to the report, Grayscale is slashing the shares of Ethereum Trust in order to pull retail investors by making the fund more attractive. The firm will split the shares by 9 to 1 on December 14. The existing shareholder will get eight additional shares.

The Grayscale Ethereum Trust completely invested in ETH, with shares designed to present investors with a cost-effective means of getting ETH exposure. Indirect exposure to ETH sidesteps the difficulties of buying and storing ETH. Based on the official press briefing:

“The Trust may create new Shares after the date of this press release and up through the Record Date.”

Grayscale Seen Massive Fund Inflow

Grayscale Ethereum Trust gained SEC status on October 12. After Bitcoin trust, it is the second crypto investment vehicle to become the Securities and Exchange Commission reporting entity. The approval means the Trust and its shares are now registered under the Securities Exchange law.

Market indicators and data records from industry insiders reflect that Grayscale has marked record inflows into its funds. Amid the growing demand for cryptocurrencies, Grayscale total investments hit almost $1.05 billion in Q3. During the same period, average weekly inflows of the Ethereum Trust surpass $15.6 million.

It seems like the price surge of Ethereum is the main reason for a stock split. Based on CoinMarketCap data, ETH rallied from $340 to $635. So Grayscale is looking to convert the fund more interesting to individual investors who may consider they have been priced out of the crypto sphere. 

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