Grayscale investments LLC has remained resolute in its effort to maintain the lead in digital assets acquisition. The firm, which has been furiously raking cryptocurrencies into its trust funds, recently added nearly $40 million in ETH.
Grayscale recently added 12,684 ETH in a single day adding up to a total of 83,678 ETH purchased in the past week. At current prices, this equates to nearly $139 million.
Grayscale has been relentless in its purchasing following the announcement that it would be reopening its Ethereum Trust (ETHE). This update may have signaled an opening of the flood gates among impatient corporate investors.
Grayscale Making Ethereum Scarcer
Consequently, the growing demand for Ethereum among corporate investors is causing a supply shock on the digital asset. This development has been made evident by data from CryptoQuant.
Sstatistics show that the amount of Ethereum held on all exchanges has maintained a downward spiral. Investors’ willingness to trade their ETH holdings just hit a historic low.
Over the last 30 days, the total ETH held on exchanges reached a low of 21 million, after nearly 4 million left trading platforms. This amounts to nearly $5 billion at the current prices. This drop off really began to accelerate starting in September 2020.
This behavior can be tied to an increase in the number of investors locking away their digital assets in cold storage. Although a subset of this category will have their tokens in staking pools on decentralized exchanges, the narrative still holds.
Ethereum prices continued a parabolic advance at the beginning of February 2021 after climbing past the $1,500 high. On Feb. 4, Ethereum briefly hit a new all-time high after reaching $1,700. It has enjoyed a 26% gain since the weekly open.
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