Similar to Bitcoin, Ethereum has become more accessible to institutional investors lately. Both 3iQ’s Canadian Ether Fund and the Grayscale Ethereum Trust prove to be rather exciting investment vehicles. These two offerings are heading in completely different directions as far as ETH holdings are concerned, however.
3IQ’s Canadian Ether Fund
If statistics by CryptoQuant are to be believed, the Ether holdings of 3IQ have declined spectacularly a month ago. Going from over 9 million in ETH to just over 163,600 is rather problematic. There is no apparent reason for this apparent decline other than potentially moving funds to cold storage.
Considering how 3IQ Corp only launched its Ether Fund in December 2020, there is no reason to decrease the amount of Ether held. As the company had over CA$500 million in AUM at the time – the company holds both Bitcoin and Ethereum – it is apparent that something doesn’t seem to add up.
Even so, no one can deny how the price of QETH.U – the trading vehicle of 3IQ – is rising in value lately. After hitting a low in late February of $1,420, the vehicle is moving up toward the $1,800 range. Overall trading volume for QETH.U is also picking up steam again, although it seems there is still some work to do in this regard.
Contrary to its Bitcoin trading vehicle, the Ethereum offering seems less popular. A bit surprising, given all of the developments surrounding Ethereum and the ongoing upgrade to Ethereum 2.0. Pricing-wise, however, Ethereum tends to underperform compared to Bitcoin. It always has done so, and there is no immediate improvement in sight just yet.
Grayscale Keeps Accumulating
Unlike 3IQ, Grayscale continues to increase its Ethereum holdings recently. Although the growth curve is flattening a bit, the process continues to repeat itself. Recent statistics confirm that the company holds over 3.174 million Ether, representing about 2.5% of the current circulating supply.
It also seems as if Grayscale’s accumulation doesn’t coincide with the ETH price trend all that much. As the overall price trend is bullish again, the current rate of accumulation is slowing down. All of this makes Ethereum a curious vehicle to institutional investors, as none of these statistics make much sense.
All of this makes one wonder if Ethereum can appeal to institutional investors and speculators. Bitcoin seemingly has a much broader appeal, which is not entirely surprising. Ethereum trading vehicles are still relatively new and will require some time to catch up. Whether that will happen before the end of the year remains difficult to predict.