Grayscale Ethereum Trust trades at record 59% discount
Nearly all Grayscale funds have been trading at high discount rates.
The Grayscale Ethereum Trust (ETHE) is trading at a record-low discount rate of 59%, according to the data shared by the crypto influencer DB.
The Grayscale trust gathers money from institutions that wish to invest in various cryptocurrencies but want to avoid the challenges of buying, storing, or safekeeping their crypto. The funds collected under ETHE are used to purchase Ethereum (ETH) to expose institutional investors to ETH passively.
There is currently $3.6 billion worth of assets under the ETHE pool collected from 31 million shares. The ETH per share is around 0.0097 ETH, and the market price per share is $4.77.
Community concerns about Grayscale
According to the data, ETHE is not the only Grayscale fund that is struggling. On Dec. 8, the Grayscale Bitcoin Trust (GBTC) reached a record-low discount of 49,20%. The GBTC has healed only slightly since then, with a discount rate of 45.
Recently, Grayscale has been facing speculations regarding its financial stability. On Nov. 16, Grayscale’s sister company Genesis halted withdrawals, raising questions regarding insolvency. Soon after, reports revealed that both companies’ parent institutions had a debt of around $2 billion to Genesis.
Even though Grayscale’s partner Coinbase assured the community that Grayscale held enough Bitcoin (BTC) to remain liquid, Grayscale refused to provide proof of its BTC reserves, which didn’t help soothe the community concerns.