Grayscale’s Ethereum Trust (ETHE) has witnessed a significant reduction in its discount to net asset value (NAV), reaching its lowest level since 2021. Previously, ETHE was trading at a discount of 23.78% to NAV, which occurs when the market price of a closed-end fund or exchange-traded product (ETP) is lower than its net asset value per share. However, with the potential approval of Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), the discount has narrowed to 6.66%, the lowest since 2021. While ETHE currently trades on over-the-counter (OTC) markets without a redemption program, it aims to become a publicly traded ETF through a process called “uplisting,” pending SEC approval. Grayscale has also removed staking features from its ETF proposal. What are your thoughts on the shrinking discount? Feel free to share your opinions in the comments section below.
