ETHE - Grayscale Ethereum Trust: The End Of The Arb

2024-06-11 17:48:58 ET

Summary

• Grayscale's crypto trust products have experienced significant fluctuations in premiums and discounts through the years. Spot ETF conversion ended that arb for GBTC holders.
• The same trend is now happening to the Grayscale Ethereum Trust which now offers just a 1.5% discount to NAV.
• I discuss the SEC's pivot on spot Ethereum ETFs, the opportunity cost of investing in ETHE, and estimated spot ETH ETF inflows.

I've been covering the crypto trust products from Grayscale Investments for Seeking Alpha going back to late 2019. As closed end funds that are backed by digital assets, these tickers have been a wild ride for investors, to say the least. In the time since I first covered the Grayscale Bitcoin Trust ( GBTC ), we've seen Grayscale's crypto funds trade massive premiums, enormous discounts, and in many instances premiums once again ....

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