Ethereum Trust on Grayscale Reverts to Discount Amid Imminent Listings of Spot Ether ETFs

  • Grayscale’s Ethereum Trust (ETHE), which was temporarily trading at a premium on July 3, is now back at a discount to its net asset value (NAV) according to latest statistics.

Grayscale Ethereum Trust: In Just Two Days, Go From Premium to Discount

On Wednesday, July 3, 2024, the Ethereum Trust (ETHE), a Grayscale fund, resumed trading at a discount following a temporary gain. Metrics showed that by July 5, the transitory increase had dropped to 1.15% below the NAV from a tiny 0.31% increase.

The premium signified the first time ETHE has had a positive valuation since 2021. The recent swings in the fund’s premium or discount to NAV align with the likelihood that spot ether ETFs may list in the next two weeks.

Even if there has been a discount of 1.15%, it is still much better than the 46% discount that was observed in July of last year. The trust was introduced on December 14, 2017, and it is quoted on the OTCQX market and traded over-the-counter (OTC) with the ticker symbol ETHE.

Publicly traded shares trade at premiums or discounts to the value of the underlying ether due to the lack of an ongoing redemption program. Prior to the spot bitcoin ETF listings, the company’s Bitcoin Trust (GBTC) showed comparable trends.

As of right now, 310,158,500 shares of the fund are outstanding, with a value of 0.00943075 ETH each share. Based on the current ether exchange rates, this equates to 2,925,027.27 ETH, or almost $8.7 billion.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Lalit Mohan

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