Michael Sonnenshein, Managing Director at Grayscale Investments, said that Ethereum-first investors have grown significantly during 2020 as the community accepts ETH as an asset class.
Sonnenshein expressed his views regarding the surge of Ethereum in a recent interview with Bloomberg. He compared ETH with Bitcoin in terms of popularity and added that Ethereum has been able to capture the attention of institutional investors.
The Board Member of the $12 billion investment fund mentioned that the world’s second-largest cryptocurrency is not just a coder currency, and it has gained traction from Wall Street giants in 2020.
“Over the course of 2020, we are seeing a new group of investors who are Ethereum-first and in some cases Ethereum-only. There’s a growing conviction around ETH as an asset class. The development of the asset class has continued to solidify itself,” Sonnenshein said in an interview.
Despite the reason that the crypto community treats BTC and ETH in different ways, there has always been strong rivalry between the top two cryptocurrencies. This year has been particularly good for the overall cryptocurrency market as institutional investors took large crypto positions, mainly in Bitcoin. But, the recent statement from Sonnenshein shows that Ethereum is not far behind in gaining Wall Street traction.
“Ethereum has along the same lines of the staying power bitcoin has,” he said. The current market cap of Ethereum stands at around $67 billion, compared to $357 billion of Bitcoin. Despite a massive difference in market capitalization, ETH gained more than 300% in terms of price this year, compared to approximately 150% gain from Bitcoin.
Furthermore, Grayscale experienced a surge in Ethereum volumes in November as the world’s largest cryptocurrency asset management firm crossed $12.5 billion in assets under management last week. ETH has started its journey towards a proof-of-stake network with the launch of Beacon Chain earlier this month as the ETH community staked more than 1 million Ethereum.