Investors pay a 515% premium to buy ether through the Grayscale Ethereum Trust.
It costs $ 90.55 to buy a share of the Ethereum Trust (ETHE) from Grayscale Investments, but its Ether holdings per share are currently worth only $ 16.10. This means that buying ether via trust is five times more expensive than buying it on the open market.
UPDATE 04/09/20: Net assets under management, assets per share and market price per share for our investment products.
– Grayscale (@GrayscaleInvest) April 9, 2020
While the ETHE premium goes up and down regularly, it is now significantly higher than the 220% to which it was reported in February. The spread was even greater – 1150% – when ETHE began trading in the over-the-counter markets in June 2019.
After exceeding $ 1 billion in investments for 2019, Grayscale’s Ethereum Trust currently holds $ 195.1 million in assets under management. The market price has increased by 238% in the last three months, while its holdings in ether have increased by 22% during the same period. However, they have dropped by almost 7% in the past 12 months and 78% since their creation.
Pay premiums to avoid taxes and regulations
The ETHE trust is aimed at investors who want to pay more for regulatory oversight and avoid risk. However, anyone considering the possibility of arbitration should note that all ETHE shares require a holding period of one year after their creation. In addition, the trust requires that all investors be certified, with a minimum of $ 25,000 to start.
Greyscale Bitcoin Trust is Still Considered “ Digital Gold ”
The U.S.-based investment company also offers trust for other major cryptocurrencies, including Bitcoin (BTC). The Grayscale Bitcoin Trust is the company’s largest holding, with more than $ 2 billion in assets under management.
The Bitcoin Trust Grayscale is a purchase considerably higher than its Ethereum Trust, with $ 7.04 worth of Bitcoin securities per share, which trade for only $ 7.80 each. Its Bitcoin holdings have increased by almost 5000% since its creation.