Digital currencies have bounced from one-year lows after imploding in 2018. Improved investor sentiments about digital asset investments are one of the reasons why Grayscale Ethereum Classic Trust (OTCMKTS: ETCG) is flying higher.
Grayscale Ethereum Classic Trust Price Analysis
In keeping up with the bullish momentum in the cryptocurrency sector, Grayscale Ethereum Classic Trust has rallied by more than 300% since the start of the year. The spike has coincided with an increase in the number of retail and institutional investors eyeing investment opportunities in the burgeoning sector and voted one of the best bitcoin exchanges.The Company registering an increase in the number of people investing in its diversified digital asset investment products also explains why the stock is flying high in the market. Digital currencies emerging as an alternative to gold as a means of hedging against market risks is another development that continues to strengthen Grayscale prospects in the digital asset space.The stock rallying by more than 300% affirms renewed investor interest in the stock, expected to continue fuelling the upside action. A rally to the $27 a share handle resulted in the stock pulling lower. However, the stock has once again started edging higher after bouncing off the $21 support level. ETCG Daily ChartGiven the strength of the upward momentum, Grayscale Ethereum Classic Trust is likely to make a run for the $37 mark, the next resistance level. Conversely, violation of the $21 support level could trigger further sell-offs that could result in the stock plunging back to the $15 mark, the next support level.
About Grayscale Ethereum Classic Trust
Grayscale Ethereum Classic bills itself as the world’s largest digital currency asset manager. The Company’s core business revolves around providing investors tools for making informed decisions when it comes to digital asset investments. The Company also offers investment products that allow investors to invest in an array of digital assets.[embed]https://www.youtube.com/watch?v=xBK9-mrBnS0&t=1s[/embed]
Q1 Positive Performance
Shares of Grayscale Ethereum Classic Trust are skyrocketing on the cryptocurrency sector turning bullish after hitting the floor in 2018. A good number of cryptocurrencies have recouped losses accrued last year after bottoming out.Revitalized investor confidence about digital assets long-term prospects is one of the reasons why cryptocurrencies are flying high. Retail and institutional investors flocking into the sectors in pursuit of investment opportunities is another reason why such assets are skyrocketing.Backed by diversified digital asset investment products, Grayscale Ethereum Classic Trust is increasingly attracting investors. In the first quarter, the Company registered a 42% increase in investments into its digital asset products. The Company raised as much as $42.7 million, with 73% of the capital coming from institutional investors.Q1 marked the first positive quarterly performance as Grayscale investment products continued to elicit strong demand. The likes of Grayscale Bitcoin Trust and Grayscale Digital Large CAP Fund are some of the products that continue to elicit keen interest.
Cryptocurrency resurgence
Grayscale Ethereum Classic Trust experiencing a spike in investments does not come as a surprise. Investors are increasingly turning to digital asset investment products after shunning Gold as a means of hedging against risks in the market. Bitcoin (BTC) for instance continues to elicit strong demand as an alternative for gold, its price has skyrocketed from the $4,000 mark to current highs of $8,000.
“There is a generational shift in how individuals are approaching investing. We strongly believe that investments in gold will be reallocated to Bitcoin as Baby Boomers begin transferring their wealth to a younger generation of investors, one that wasn’t raised on the gold standard,” said Barry Silber, Founder, and CEO of Digital Currency Group and its subsidiary Grayscale Investments.
Grayscale Ethereum Classic has since launched the #Drop Gold campaign that seeks to encourage people to invest in digital assets such as Bitcoin, which has superior physical properties and market utility.
Bottom Line
Grayscale Ethereum Classic Trust is likely to continue surging as investor sentiments about digital assets investments continue to edge higher. An increase in the number of institutional investors eyeing ways of investing in the burgeoning cryptocurrency sector is a development that continues to work in favor of the digital currency asset manager.The Company has already established a robust portfolio of diversified digital investment products that should continue to strengthen its completive edge in the market. The stock is thus likely to continue edging higher as more people eye digital asset investments and cryptocurrencies remain bullish.We will be updating our subscribers as soon as we know more. For the latest updates on ETCG, sign up below!Disclosure: We have no position in ETCG and have not been compensated for this article.
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