Grayscale’s Ethereum Trust Offering ETH at 700% Premium

1 min
3 June 2020, 09:20 GMT+0000
Updated by Kyle Baird
3 June 2020, 09:20 GMT+0000
In Brief
  • Grayscale’s Ethereum Trust is selling ETH at 700% premium.
  • At $177 for one share of the trust, investors receive 0.094 ETH.
  • Figures indicate investor willingness to buy ETH at a much higher price for Grayscale’s management services.
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Grayscale Investments Ethereum Trust is now selling ETH at a premium of 700%, according to the latest data shared by the asset management firm. The increase follows a steady trend of a rising premium, up from 220% in February 2020.
One share of the Grayscale Ethereum Trust sells for $177. At 0.094 ETH per share, investors are indeed buying Ethereum at nearly seven times the price for what they would get through a spot trade.
Table courtesy of Grayscale Investments
The premium has actually risen since April when it was trading at 515%. This itself was a 220% increase from February 2020 — growth that some in the cryptocurrency community see as being an extremely positive sign. Other data that Grayscale has released shows a considerable increase in the influx of institutional investments. The firm reported a great increase in institutional investment in Q3 2019, while the Bitcoin Trust has grown 10 fold since Q1 2019. It has also doubled down on these bets, having bought more Bitcoin than has been mined since the last halving, and purchasing almost half of all the Ethereum mined in 2020. Grayscale’s Bitcoin Trust is by far its most popular investment vehicle, with roughly $3.5 billion under management. It is followed by Ethereum, Ethereum Classic (ETC), and Zcash (ZEC). Investors in the trust pay a premium for Grayscale’s service so that they needn’t worry about regulation or custody.


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