The Ethereum news today show that the premium in the Grayscale ETH shares within the Grayscale Investment Trust plummeted by 50% in less than one week. Crashing by half, the shares dropped in just four days on the secondary, over the counter (OTC) markets.
Now that each share is representing 0.094 Ether (ETH), the sharp retracement has seen the price premium on the trust’s shares falling from 750% to roughly 360% in less than two weeks. In that manner, the current price of ETHE (the name of the Grayscale ETH Trust) is $102.5, meaning that investors are willing to pay an implied price of $1,090 per Ether to access the cryptocurrency through the trust on the OTC markets.
This new crash also coincided with many ETHE shares which have been unlocked – previously purchased on Grayscale’s primary market. They now have a 12-month lockup period and the expiration of this period resulted in many more of these shares being made available on the secondary over the counter (OTC) markets.
Currently, the excitement around Ethereum’s forthcoming ETH 2.0 revamp appears to have been reflected in the ETHE shares, which recently traded for a price of $2,905 per Ether. If this price is reflected in the real one of Ether, it would equate to a market cap of $323 billion or close to double of the Bitcoin (BTC).
However, over the past week we have seen the Grayscale’s Ether shares plummet – and ETHE fell from $204 to less than $80 earlier today before it rebounded back above $100. This heavy selling of the Grayscale ETH shares on the ETHE markets has not impacted the spot price of Ether. In fact, ETH posted slight gains as the prices oscilated between roughly $230 and $245 in the past four days.
Currently, the Grayscale ETH shares are part of the Ethereum Trust which offers ETH exposure to institutions all while taking care of their custody, purchasing, taxation as well as other technical details linked to cryptocurrency investing. This is a popular topic in the cryptonews and the interest in ETHE has been rising.
As of early June, Grayscale purchased $110 million worth of ETH in order to support their investment trust.
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