Grayscale’s Ethereum Trust is trading at record discounts with demand for its shares in decline. Data from Markets Daily, which tracks the performance of the trust, indicates that it closed Sept. 18 at a discount of 60%. The Ethereum Trust is an investment vehicle that allows institutional investors to gain exposure to ethereum (ETH) without having to hold the cryptoasset directly. Effective Sept 17, Grayscale launched a secondary market for shares under its Bitcoin Trust, allowing investors to divest their holdings in the fund without holding Bitcoin directly. Grayscale’s investments are famous for frequently buying up more bitcoin than miners create and sending the price higher as a result.
The Grayscale Ethereum Trust has been trading at a discount of around 55% in recent weeks, which is the largest it’s ever been. This is a sign that investors are not particularly optimistic about the future price of ethereum (ETH), which is the cryptocurrency being backed by this trust.
GrayScale Still Has Confusion
A closer look at data from Markets Daily, which tracks the performance of the trust, indicates that it closed Sept. 18 at a discount of 60%. This means that if an investor were to purchase $100 worth of shares in this fund today they would only receive $44 worth of shares—a difference worth more than $6 million USD based on current prices.
The Ethereum Trust is an investment vehicle that allows institutional investors to gain exposure to ethereum (ETH) without having to hold the cryptoasset directly. This trust was first launched in 2017, and it has become one of the most popular ways for larger investors and institutions to gain access to this cryptocurrency.
The price of ether has risen by more than 200% since its inception, despite a recent bear market that saw many cryptocurrencies lose almost half their value over the last year. Ether has also become increasingly popular with developers who use it as a base currency for creating new blockchain projects, which have grown into some of the largest cryptocurrencies in terms of market capitalization.