ETCG - Can You Really Buy Ethereum Classic at a 58% Discount?
Lost in the wave of the first cryptocurrency exchange-traded funds (ETFs) hitting the market over the past month is that investors with traditional brokerage accounts have had stock exchange-traded access to crypto exposure for some time. Grayscale operates a couple of single-asset cryptocurrency trusts, holding nothing but cold-stored crypto in single denominations. Grayscale trusts trade more like closed-end funds than exchange-traded funds -- with premiums and more recently wide discounts -- along the way.
Grayscale's two largest trusts -- holding Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) -- are fetching discounts of 16% and 5% , respectively. They are mammoth trusts with a combined $54 billion in assets, but there are even bigger markdowns to be had in the Grayscale catalog.
Grayscale Ethereum Classic Trust (OTC: ETCG) is commanding the largest discount to its net assets among all of the firm's investments right now. The trust is a single-asset investment owning only Ethereum Classic (CRYPTO: ETC) , and as of Thursday's close it was trading at whopping a 58% discount to its underlying crypto. How did we get to this extreme disparity between the spot price of Ethererum Classic and the market price of Grayscale Ethereum Classic Trust? More importantly, can you really buy Ethereum Classic at a 58% markdown?
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Can You Really Buy Ethereum Classic at a 58% Discount?