Grayscale’s Ethereum Trust (ETHE) has once again returned to trading at a discount to its net asset value (NAV) after a brief period of trading at a premium on July 3. This shift in value occurred within just two days.
On July 3, the ETHE briefly experienced a small increase, reaching a premium of 0.31%. However, by July 5, data showed a decline of 1.15% below the NAV, resulting in a discount.
This premium was the first positive valuation the ETHE has seen since 2021. The recent fluctuation between the fund’s discount and premium to NAV aligns with the potential listing of spot ether ETFs within the next two weeks.
Although the 1.15% decline represents a discount, it is significantly better than the 46% discount witnessed last July. The ETHE was launched on December 14, 2017, and is traded over-the-counter (OTC) on the OTCQX market under the ticker symbol ETHE.
Since there is no ongoing redemption program, publicly traded shares of the ETHE can be subject to premiums or discounts in relation to the value of the underlying ether. Similar patterns were observed with Grayscale’s Bitcoin Trust (GBTC) prior to the listing of spot bitcoin ETFs.
Currently, the ETHE has 310,158,500 outstanding shares, each valued at 0.00943075 ETH. This totals to 2,925,027.27 ETH or approximately $8.7 billion based on the current exchange rates for ether.
What are your thoughts on the ETHE returning to a discount? Feel free to share your opinions in the comments section below.
