The crypto market will soon have a new investment vehicle targeting small scale investors, thanks to investment firm Grayscale.
Grayscale Investments has announced that individual investors will soon have the opportunity to invest in its latest offering- the Grayscale Ethereum Trust.
According to Grayscale, the Trust is “the first U.S. publicly quoted security” that is exclusively invested in Ethereum (ETH). The investment vehicle also solely derives its value from ETH prices.
On Thursday, Grayscale Investments announced that the Financial Industry Regulatory Authority (FINRA) had approved the product, allowing for the public quotation of the trust’s shares.
In an email sent to crypto publication Coindesk, Grayscale’s Marissa Arnold said that the offering will allow help “all kinds of investors,” experience investing in crypto.
In particular, individual investors will gain exposure to the cryptocurrency’s price movement without having to experience such challenges as “buying, storing, and safekeeping” of Ethereum (ETH).
Details on the Grayscale website reveal that the trust managed roughly $7.5 million worth of Ethereum as of April 30, 2019.
As per the company, traders will be able to access the security in over the counter (OTC) trades, with the product trading under the ETHE symbol. The trust gives an opportunity to entry-level investors, who can now own and trade instruments tied to ether alongside iPhone maker Apple and IBM shares.
The Grayscale Investment Trust has previously been open to accredited investors only and was prohibitive to small scale individual traders as it required that the minimum investment be $25,000.
The approval from FINRA marks an important step for Grayscale as it looks to roll out the security for trading. At the moment, no specific date has been set, though that should be somewhere in the next two weeks.
Ethereum (ETH) is currently the second-largest cryptocurrency in the world by market cap and is exchanging hands at $251.75 against the U.S. dollar. The crypto has gained 5.6% on the day and has a market capitalization of $26.7 billion.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.