Today we made our first Crypto purchase – through the stock market. It is a SEC approved trust that trades publicly under the symbol ETCG* $6.30.
This is one of the two Ethereum’s – Ethereum Classic (the original). The second is Ethereum Trust (ETHE) $48.35 – a splinter branch of Ethereum Classic. Both appear very over-sold. We are looking for a regression to the mean trade. Ideally that means back towards it 50-day moving average, currently around $9.32.
You can see in the charts below of the two types of Ethereum stocks. We do not believe it matters at this time which one we want to own if bought as a trade Vs a long-term position for wealth preservation. We chose the lower priced vehicle simply because we are limited in funds to make this trade.
- ETCG is down from its June high of $17.40 to $6.30, a percentage drop of 74%.
- ETHE is down from its June of $259 to its current price of $48.35, a percentage drop of 81%.
You can read about the differences and why of one ethereum unit from the other at this link.
ETCG: The Avg Volume (10 days)161,546 shares
ETHE: The Avg Volume (10 days)158,698 shares
The number of professional Money managers making their way into Crypto currencies is growing by the day. Here are examples of expansion into Crypto currencies.
- Sept 10, 2020 Bitcoin Rallies as CNBC’s Jim Cramer Plans to Invest
- May 2020, $2 Billion Cryptocurrency Hedge Fund Industry Set to ‘Grow Significantly’
- American Express: Blockchain technology is already used in several areas within financial services, including international payments. Now, some U.S. banks are creating their own blockchain-based systems, including digital currencies, to enable B2B cryptocurrency payments between their customers. Proponents say the potential benefits include reduced transaction fees and faster money transfers. Japanese banks are also creating payment systems based on digital currencies.
- Sept 15,2020: Bank embraces blockchain to facilitate Belt and Road trade
- June 25 2019: IBM Launches Stablecoin Backed By FDIC-Insured Banks
You might check out Grayscale.com. They have created or are in process of creating a number of equity like single asset trusts that hold specific cryptocurrencies. Names listed on their website include Bitcoin, Ethereum, Litecoin and XRP.
The two equity vehicles charted above are publicly traded, Grayscale trust products.
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* An account related to LOTM holds a position in this security. These Investments are bought and sold constantly.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
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