Institutes increase Ethereum exposure by 19% and Bitcoin by 2.6% in the third quarter

Institutional Bitcoin holdings declined in the third quarter, while market share for Ethereum-based products rose sharply, according to SEC filings.

The number of Grayscale Bitcoin Trust (GBTC) shares held by large institutions fell 2.6%, while the number of Grayscale Ethereum Trust (ETHE) shares rose 19% in the third quarter.

Large institutional investment managers reported $ 546.8 million in GBTC and $ 74.6 million in ETHE, using stock prices as of press time for the two funds. Companies that manage at least $ 100 million must pay Form 13F within 45 days of the end of the quarter to present your portfolio.

In the latest series of filings, 10 companies announced that they have ETHE in their portfolios. The two largest are NYC-based Tocqueville Asset Management with 79,398 shares and San Francisco-based Main Management ETF Advisors with 78,000 shares.

The growing interest in indirect exposure to Ethereum through trusts could stem from the excitement surrounding DeFi, a synthetic term used to describe financial products that allow users to borrow, lend, or trade their crypto assets without any middlemen .

As Liam Kelly pointed out on the news last month DeFi Friday, identifying methods to securely store profitable DeFi tokens remains a major challenge for many banks and investment managers.

Several companies now appear to have sold all of their GBTC shares. The largest of these was Outlook Wealth Advisors LLC, which sold 60,000 GBTC and instead held 60,000 shares in mining and software development company Bitcoin Services Inc. (BTSC).

At the beginning of the year, only two grayscale trusts tended to show exposure to Bitcoin and Ethereum. But that’s already starting to change, at least when it comes to Bitcoin. Bitcoin Services Inc, 3iQ’s Toronto-based The Bitcoin Fund, Idaho-based miner XTRA Bitcoin, and New York-based Osprey Bitcoin Trust accounted for $ 17.5 million of reported holdings in the third quarter.

Cathie Wood’s ARK Invest remains the company with the largest single ownership interest in Bitcoin and Ethereum-based investment products. ARK’s stake makes up 82% of all GBTC stocks and 42.6% for ETHE.

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Mr. Teacher

After decryption

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