Ethereum 2021 Surge: 385% Rise & Grayscale Trust Institutional Buy-In

In early 2021 Ethereum surged 385% in four months, reaching a 0.61 price ratio to Bitcoin. Eight major institutions bought ETH via Grayscale Ethereum Trust (ETHE), fueling the rally.

Entering 2021, Ethereum surged by 385 % within four months, and its price ratio relative to Bitcoin climbed to 0.61. The market generated a variety of interpretations for this movement.

Direct answer: Eight institutions—Rothschild, Emerald, Formidable, Hellman Jordan, Edge, Next Capital, Tradition, and Independent Financial Partners—acquired ETH through the Grayscale Ethereum Trust (ETHE).

BlockBeats Rhythm discovered that in the first quarter of 2021 a large number of institutional investors purchased ETHE, many of which already held positions in GBTC.

Which institutions purchased Ethereum through Grayscale?

We have compiled a list of institutions that entered the market via the Grayscale Ethereum Trust, revealing the allocation logic of these heavyweight players and their impact on the industry. This article will walk you through the underlying investment motivations and analyse the potential considerations that led these institutions to choose ETHE, helping readers grasp the institutionalisation trend of crypto assets.

*Note: Cryptocurrency gains may be taxable in your jurisdiction; consult a tax professional for guidance.*

*For U.S. residents, access to Binance’s services must be through Binance.US rather than the global platform.*

Which institutions purchased Ethereum through Grayscale?

Rothschild Investment

Rothschild Investment was founded in 1908 and holds roughly US $1.2 billion in secondary‑market positions, offering a full suite of brokerage services. In Q1 2021 the firm bought 265,300 shares of ETHE, valued at approximately US $9.15 million.

Emerald Mutual Fund Advisers Trust

Emerald Mutual Fund Advisers Trust is a large‑scale consulting entity that manages about US $3.047 billion in secondary‑market assets. It currently holds 114,100 shares of ETHE, worth roughly US $3.93 million.

Formidable Asset Management

Formidable Asset Management operates as a hedge fund with secondary‑market exposure of about US $467 million. In the first quarter of 2021 the fund acquired 38,100 shares of ETHE, which are presently valued at around US $1.31 million.

Hellman Jordan Management

Hellman Jordan Management, founded in 1978, focuses on equity investment management and maintains roughly US $70 million in stock assets. In Q1 2021 the firm sold 42,900 shares of ETHE, retaining 20,400 shares, valued at about US $700,000.

Edge Wealth Management

Edge Wealth Management is based in New York and oversees approximately US $700 million in assets, of which secondary‑market holdings total about US $495 million. During Q1 2021 the firm purchased 17,300 shares of ETHE, equating to roughly US $600,000.

Next Capital Management

Next Capital Management operates as an independent advisory firm that provides institutional‑grade asset management and wealth‑planning services to high‑net‑worth clients. Its secondary‑market position stands at about US $154 million. In the first quarter of 2021 it bought 11,500 shares of ETHE, currently worth approximately US $400,000.

Tradition Wealth Management

Tradition Wealth Management manages close to US $700 million in assets, with secondary‑market holdings of roughly US $568 million. In Q4 2020 the firm acquired 7,381 shares of ETHE, now valued at about US $255,000, and generated an unrealised profit of roughly US $144,000 in 2021.

Independent Financial Partners Advisors

Independent Financial Partners Advisors oversees roughly US $3 billion in assets. In Q1 2021 it purchased 6,911 shares of ETHE, which are currently valued at about US $238,000.

The institutions listed above represent the primary players that obtained Ethereum through the Grayscale channel. For further details on institutional investment activity, please follow additional articles from Bitaigen (比特根).

Ethereum 2021 Surge: 385% Rise & Grayscale Trust Institutional Buy-In