A multi-billion dollar crypto fund has been snapping up cheap Ethereum in 2020, indicating an increase in institutional interest before proof-of-stake (PoS) is launched.

Grayscale Ethereum Trust has brought over 48% of all of the Ethereum mined this year according to reports among the crypto community.

The trust handles over US$244 million [AU$377 million] in an index fund that is offered to institutional investors. The fund tracks the long-term price movement of Ethereum while protecting investors against volatile drawdowns.

According to figures from the company website, Grayscale purchased over 756,000 ETH in 2020, representing over 48% of all Ether mined this year.

The fund offers shares to investors which are backed by 0.094 ETH, so eleven shares would need to be purchased to get exposure to one ETH.

Ethereum supply at the end of December was a little over 109 million. By April, it had increased by 1.5 million, meaning that Grayscale has snapped up almost half of the total produced this year.

The move signifies a massive increase in interest from major institutions that will want a lot of exposure to staking, which can offer fixed returns over time.

At the moment, Ethereum is trading just under $200, but it will not remain there for long if the current momentum continues.

Featured image courtesy of Grayscale/Twitter