Arkham Discovers Wallet Addresses Holding Grayscale’s $5 Billion in ETH
After uncovering Robinhood as a top “Whale” in BTC and ETH globally, the on-chain data platform Arkham has revealed intriguing details about Grayscale, showing that they hold a substantial amount of Ethereum worth $5 billion. Through careful analysis and aggregation of wallet addresses, Arkham has identified that Grayscale owns 2.98 million ETH, distributed across 500 different wallet addresses.
Grayscale, a company specialized in issuing cryptocurrency investment products in the form of funds, has emerged as the second-largest holder of Ethereum on the Ethereum network. The company holds cryptocurrency assets in funds and issues fund shares to investors, making it easier for them to access ETH without the need to directly hold it.
Breaking: Arkham has identified the Grayscale Ethereum Trust on chain.
It is now the second largest ETH entity globally with $5B in ETH.
This had not been previously reported or publicly identified. pic.twitter.com/MQqKT6E9v6
— Arkham (@ArkhamIntel) September 1, 2023
One of Grayscale’s well-known products related to Ethereum is the Grayscale Ethereum Trust (GETH), with assets under management also totaling $5 billion, aligning with Arkham’s findings.
Beyond Ethereum, Grayscale manages investment fund products for various other major cryptocurrencies such as Bitcoin, Solana, Chainlink, Bitcoin Cash, Ethereum Classic, Zcash, and DeFi indexes, with total assets under management reaching $21.4 billion as of September 2, 2023.
Grayscale’s fierce battle extends not only to the Ethereum market but also to its efforts to convert the Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF, a proposal recently approved by the U.S. Securities and Exchange Commission (SEC). Both GBTC and GETH experienced significant price declines during the crypto market’s downtrend from 2022 to 2023 due to the absence of a conversion mechanism from fund shares to BTC or ETH. Grayscale hopes that transforming its cryptocurrency funds into ETFs will help mitigate this discrepancy and attract more investors.
Finally, Arkham has also provided intriguing information about the popular U.S. securities and cryptocurrency trading platform, Robinhood. According to Arkham, Robinhood ranks as the third-largest holder of BTC on the Bitcoin network and the fifth-largest holder of ETH on the Ethereum network.
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