Assets, Ethereum

What Is Grayscale Ethereum Tr Eth?

Gray scale Ethereum is an open source, decentralized platform that runs smart contracts on a blockchain with EVM bytecode. It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes.

Gray scale Ethereum also provides a cryptocurrency token called “Ether”, which can be transferred between accounts and used to compensate participant nodes for computations performed. “Gas”, an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network.

Gray scale Ethereum was proposed in 2013 by Vitalik Buterin, a programmer and co-founder of Bitcoin Magazine. Buterin had argued that Bitcoin needed a scripting language for application development. Failing to gain agreement, he proposed development of a new platform with a more general scripting language. Ethereum was crowdfunded during 2014–15.

The system went live on 30 July 2015, with 11.9 million coins “premined” for the crowdsale. This accounts for approximately 13 percent of the total circulating supply.

NOTE: This is a warning note to advise caution when considering investing in Grayscale Ethereum Trust (“ETH”). ETH is an open-ended trust that holds Ethereum and derives its value solely from the price of Ethereum. As with any investment, there are associated risks. Investing in ETH exposes you to the risk of losses due to market volatility, uncertainty of returns, illiquidity, and the potential lack of regulatory oversight or protection. Moreover, ETH may not be suitable for all investors and you should carefully consider whether it is appropriate for your particular circumstances before investing. You should also consult a financial adviser or other qualified professional before making any investment decisions.

In 2016, as a result of the collapse of The DAO project, Ethereum was split into two separate blockchains – the new separate version became Ethereum (ETH), and the original continued as Ethereum Classic (ETC). The value of the ether currency grew over time and ETH became one of the largest cryptocurrencies by market capitalization.

What is grayscale Ethereum?

Grayscale Ethereum Trust (OTCQX: GBTC) is an investment vehicle that provides investors with exposure to the price movement of ETH through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping ETH.

Investors seeking exposure to ETH may find GBTC attractive because it trade on major US exchanges such as OTCQX, NYSE Arca, and BATS BZX Exchange; it offers investors who cannot or do not wish to hold cryptocurrency directly an accessible way to gain exposure to ETH; and GBTC’s shares represent fractional undivided beneficial ownership in the Trust’s underlying assets so investors don’t need to worry about storing or safekeeping cryptocurrency.

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