Odaily Frontline | Grayscale Ethereum Trust plummeted 65% within a month, what happened?

Odaily资深作者

2020-06-26 11:18 (UTC+8)

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In June last year, the total amount of ETHE fund shares doubled, which also resulted in a large number of shares being unlocked this month.

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In June last year, the total amount of ETHE fund shares doubled, which also resulted in a large number of shares being unlocked this month.

This article is from:The Block, Originally by Frank Chaparro

Odaily Translator |

This article is from:

, Originally by Frank Chaparro

Odaily Translator |OTCMarketsGrayscale Ethereum Trust (ETHE), a compliant cryptocurrency investment vehicle for traditional investors, experienced last week its sharpest price drop since its inception.

TradingView data shows that ETHE prices hit a monthly low of $82.5 this week, down about 65% from a yearly high of $239 set around June 4. At the same time, the Huobi Global website market shows that the ETH spot price this month fluctuates by only 13.8% (the highest is 253.66 USDT, and the lowest is 218.50 USDT).As of the publication, ETHE is inThe above offer is $98.29.

ETHE's

Fund design

It shows that each share of the fund only represents the actual assets of about 0.09387103 ETH, which means that there is still a premium of about 356% between the ETH price and the spot ETH price, but this figure has dropped significantly from the 948% premium level at the beginning of the month.

Before the ETHE price and premium level fell, a large number of shares of the fund began to be listed and traded in the secondary market. The increase in supply can be found in the design of the Grayscale Ethereum Trust Fund - there is a one-year lock-up period before the fund shares can be freely traded.

Let's go back in time to 2019.