Grayscale’s Ethereum Trust Offering ETH at 700% Premium

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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.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Rahul's cryptocurrency journey first began in 2014. With a postgraduate degree in finance, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has guided a number of startups to navigate the complex digital marketing and media outreach landscapes. His work has even influenced distinguished cryptocurrency exchanges and DeFi platforms worth millions of dollars.

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