Grayscale Ethereum Trust (ETHE) is trading close to a 60% discount with regard to underlying value of assets. It is believed that share prices have plummeted 93% since June, 2019’s, all-time high (ATH), as stated by Cointelegraph.
According to Cointelegraph, fallout from parent company Digital Currency Group’s nearly $1.675 billion debt to troubled crypto lender Genesis could affect Grayscale assets. Insights from YCharts data projected a 59.39% discount during the time of writing, Reportedly, crypto Twitter influencer “db” tweeted an image on January 4, 2023, showed the entire collection of Grayscale crypto-based trusts along with statistics to project their respective premium. Furthermore, it showed the majority of Grayscale’s trust funds are trading at a discount with Ethereum Classic Trust impacted the most, currently trading at a 77% discount.
On the basis of information by Cointelegraph, the Grayscale Bitcoin Trust (GBTC) is trading at a 45% discount. Reportedly, Filecoin Trust is trading at a 108% premium and Chainlink Trust at a 24% premium. Insights from Grayscale’s official website stated that there are currently $3.7 billion worth of assets, with regard to the Grayscale Ethereum Trust (ETHE) pool collected from 31 million shares. Market analysis has shown that Ether per share stands nearly 0.0097 ETH, which is worth $11.77 USD, and the market price per share is $4.77 USD.
Moreover, Cointelegraph noted that digital assets research and analysis company Arcane Research recently recommended that the debt DCG and Genesis owes to Gemini could result in DCG to start a Reg M distribution. “A Reg M would cause a massive arbitrage strategy of selling crypto spot versus buying GrayscaleTrust shares. If this scenario plays out, crypto markets could face further downside,” Arcane Research stated.
(With insights from Cointelegraph)