The Grayscale ETH trust is in the Ethereum latest news, showing amazing year to date returns of up to 679%. Data shows that it is currently trading at a huge premium against ETH’s net asset value as it indicates that there is a fair amount of FOMO around it.
Even though it is still very hard to determine whether this huge increase was caused by institutional or individual investments, a lot of traders should be careful when investing in products with such huge premiums.
The Grayscale Investments Ethereum Trust has shown incredible returns this year, making it one of the most profitable trusts in the cryptocurrency industry. Data on the cryptocurrency even shows that the investment vehicle (which is approved by the FINRA and available to retail/institutional investors) has shown year-to-date returns of almost 680%.
However, the Grayscale ETH trust may be even better performing in the future, considering the fact that Ethereum is still adding gains. When compared to the 84% growth that ETH showed on the spot market since the start of 2020, this indicates that Grayscale’s trust is traded with high premiums.
We can notice that there is not more concrete data from Grayscale which shows that it is impossible to determine what exactly is the cause of the huge premium for the largest altcoin. Still, some members are specualting that this could be a combination of multiple factors.
— Grayscale (@GrayscaleInvest) June 3, 2020
The co-founder of ETHHub, Anthony Sassano, noted that Grayscale issued a detailed report on Ethereum back in February where it said that the altcoin was a “store of value.” The theory is corroborated by data as the YTD returns of the Grayscale ETH Trust spiked once the report was issued – mostly because of an influx of new money.
Anyways, Ethereum remains one of the best performing coins and a direct beneficiary of the decentralized finance (DeFi) movement which has hundreds of distributed teams across the world building world-class new financial products which would have otherwise ceased to exist in the traditional financial systems.
Currently, the price of Ether (ETH) in the cryptonews is around $239.
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