Grayscale Ethereum Trust Open to Individual Investors

But is the Trust as good or better than buying direct?

Barry Silbert, CEO of the Digital Currency Group and of Grayscale Investments, announced that the Grayscale Ethereum Trust (ETHE) was approved by FINRA this week. This product had been only available to accredited investors before this approval for the public quotation system. Now individual investors can buy it too.

But Should You? Here’s the announcement from Grayscale themselves

Grayscale already operates the GBTC Bitcoin Trust, which usually trades at a premium to the daily price of Bitcoin.

Here is the press release and then coverage from a couple of our favorite crypto/news sites:

Per the press release, each Share of ETHE represents ownership of 0.09662399 Ethereum. At the current price of $240, this is ~$23.20. Shares need to be DTC eligible, which will take about 2 weeks before it will be ready for the public to buy. It will trade on the OTC.

Some Experts Weigh In

A couple of expert opinions:

Spencer Noon, was with SeatGeek, now with Doggie Tail Capital

Anthony Pompliano of Morgan Creek and podcaster

So Should You Buy It?

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Our CNON Take: We believe that any increased access to crypto for more people more easily is a good thing. This is clearly a good thing in that way. Is this better than buying ETH directly? Here are some reasons why you might buy from the Trust:

  1. Pretty liquid without searching for a crypto exchange to trade it

  2. Liquidating a position for USD or other listed securities would be very easy and fast. No need for Fiat money exchange and conversion.

  3. As a listed security, it’s eligible for more 401(k), IRA and other retirement plans than buying direct

  4. Eliminates the need for wallet management, maintenance and use of keys so it’s convenient

  5. Like some of the expert opinions above, I think this is a bullish signal for ETH

Why Wouldn’t You Buy It?

  1. If you already have experience with exchanges, then you can buy direct yourself as much or as little as you want

  2. You are not forfeiting the custody and control of your ETH to someone else

  3. You want to maintain your wallet and keys

  4. Something could happen to Grayscale (unlikely as they are well capitalized but possible)

Back to the original question in the title. Is buying from the trust better than buying ETH directly?

In a word, No. If you have traded crypto and used wallets before, then you might as well get an Ethereum wallet and hold your ETH direct. But many people are new to crypto or just don’t want to be bothered with all that. They want an easy solution. And if that’s you, then starting in a couple weeks you will have a new option for holding one of the best cryptocurrencies we have.