The Grayscale Trust sells Ethereum for over $2000 with a 750% premium on the ETH market price as we are reading more in the following Ethereum news today.
By buying shares on the Ethereum Grayscale Trust would inquire investors to pay a bigger premium upwards of 750% compared to the current market price of ETH. Grayscale is a company that provides institutional investors with bigger exposure to the price of cryptocurrencies such as Bitcoin and Ethereum through their trust products. The company’s ETH trust is now selling ETH shares where one share represents 0.09395466 ETH. For someone to own a full ETH, they would have to purchase more than 11 shares.
According to the company’s official website, the market price per share on closing time June 12th, 2020, was set at $195.50 where the worth of ETH holdings per share was just $22. An investor would have to pay more than $2000 to own a full ETHE through the Greyscale Ethereum trust. This represents a 750% premium compared to the current market price of the asset. The investors are also paying higher premiums on their Bitcoin products as well. The current market price per share is $10.88 whereas the BTC holdings per share equal $9.01. This means that the investors are now paying much more than $20 on top of Bitcoin’s market price.
The upside of owning these shares of Greyscale products is that investors should not worry about clearance, storage, and custody of their assets. This is maybe because of the reason why larger investors are paying 20% premiums on BTC. However, the premium on ETH is much higher and there doesn’t seem to be a good enough reason as to why large investors would pay more than $2000 for ETH that they can buy for ten times lower the price.
06/12/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@GrayscaleInvest) June 12, 2020
Grayscale was also buying 150% of the newly minted bitcoins right after the third halving took place. it has also increased the holdings by more than 60,000 BTC in just a few months. Greyscale purchased almost 50% of all mined ETH coins in 2020 as the institutional interest for crypto is growing. The digital asset management company outlined the increased interest from the institutional investors and they believe that the upcoming Ethereum 2.0 could be the reason why. Some of the latest information on the matter show that the total number of ETH mined from January 2020 up until now, was 1,563,245.875.
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