Grayscale's Ethereum Trust (ETHE) has reverted to trading at a lower price than its net asset value (NAV) after a brief period of being priced higher on July 3, according to recent data.
The ETHE, a popular Grayscale fund, experienced a temporary increase on Wednesday, July 3, 2024, reaching a modest 0.31% premium. However, by July 5, metrics indicated a drop to 1.15% below the NAV.
This premium marked the first time since 2021 that ETHE had a positive valuation. The recent fluctuation between the fund's discount or premium to NAV aligns with the possible listing of spot ether exchange-traded funds (ETFs) within the next two weeks.
Although the 1.15% decline represents a discount, it is significantly better than the 46% discount observed in July last year. The ETHE, which was launched on December 14, 2017, is traded over-the-counter (OTC) and quoted on the OTCQX market under the ticker symbol ETHE.
Since there is no ongoing redemption program, publicly traded shares are subject to trading at premiums or discounts compared to the value of the underlying ether. Grayscale's Bitcoin Trust (GBTC) displayed similar patterns before the listing of spot bitcoin ETFs.
Currently, the fund 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 today's ether exchange rates.
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