Ethereum, the second-largest digital currency behind only bitcoin, might not be the first asset investors think of when it comes to beneficiaries of lower interest rates. But there's a compelling case to be on that front.
Ether, the second-largest cryptocurrency behind only bitcoin, followed its bigger counterpart lower when digital currencies were slammed earlier this month. As of late Monday, it resided below the psychologically important $2,700 area despite having surged more than 10% over the prior week.
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The trust described focuses on achieving its investment objective by holding Ethereum (ETH), a digital asset created and transmitted through the Ethereum network's operations. This network is a globally dispersed collection of computers that function on cryptographic softwares based on open-source code protocols. To ensure its goal, the trust values its shares daily according to the MarketVector™ Ethereum Benchmark Rate. Importantly, the trust operates without employing leverage, derivatives, or any similar financial instruments that could potentially complicate its straightforward investment strategy towards Ethereum.
The central product of the trust is its holdings in Ethereum (ETH), a leading digital asset in the cryptocurrency market. Ethereum is not simply a digital currency; it is a blockchain platform that enables the creation of decentralized applications (dApps) and smart contracts. These contracts run exactly as programmed without any possibility of fraud or third-party interference, making ETH highly valuable for various applications across industries.
To provide transparency and a clear valuation metric for its shares, the trust employs the MarketVector™ Ethereum Benchmark Rate. This rate is a comprehensive reflection of Ethereum's actual market value, derived from multiple sources to ensure accuracy and reliability. By valuing its shares against this benchmark, the trust offers investors a secure and clear understanding of their investment's worth in relation to the broader Ethereum market.
In its operation, the trust commits to a straightforward and less risky investment approach by avoiding the use of leverage, derivatives, or similar financial arrangements. This strategy is designed to appeal to investors seeking exposure to Ethereum's value without the additional risks associated with complex financial instruments. By focusing solely on holding ETH, the trust aims to provide a more stable and transparent investment option within the volatile cryptocurrency market.