Grayscale Ethereum Trust (ETHE) Premium Sets All-Time-Low at -14.3%

Published May 14, 2021 | Updated May 14, 2021

In Brief
  • Grayscale Ethereum Trust record a new all-time low premium of -14.3%.
  • The premium has registered a sharp decline amid rising spot prices.
ETHE-Shares

Grayscale Ethereum Trust (ETHE) Premium Sets All-Time-Low at -14.3%

  • Grayscale Ethereum Trust record a new all-time low premium of -14.3%.
  • The premium has registered a sharp decline amid rising spot prices.

Grayscale Ethereum Trust (ETHE), the institutional crypto investment fund for the second-largest cryptocurrency registered a negative 14.3% premium reaching its lowest since listing. Grayscale being the world’s largest crypto asset manager offers a range of crypto-based trust funds to invest, in absence of a regulated ETF in the United States.

Grayscale ETH trust
Source: Skew

These private investment funds have also turned into an important market indicator and institutional interest and a rising premium suggests higher demand and vice versa. The Grayscale Ethereum trust fund currently holds $13 billion worth of assets out of which nearly $1.28 billion has flowed in this year.

ETHE
Source: Ycharts

A similar trend was seen with its highly popular GBTC fund which for the majority of its trading period has had a positive high premium rate, but over the past month the GBTC premium has come down significantly and even fell to negative during the last month’s 20% Bitcoin price correction.

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ETH Price Recover After Yesterday’s Fall

Ether’s price has bounced back above $4,100 from yesterday’s crash to $3,549 and currently trading with a 9% surge at $,133. Yesterday saw another crypto blood bath with the majority of tokens falling by over 10%, but the markets rebounded sharply today, and even Dogecoin which was down over 30% has risen above $0.54 to register a 28% gain.

ETH is on a highly bullish momentum and price discovery mode where it has registered a new ATH every other day in the past couple of weeks. The aggressive price gains by ETH have helped it leap over Bitcoin in terms of year-to-date returns as well. The recent surge in price is being attributed to declining market supply as the balance of Ether on centralized exchanges reached a two-year low, and growing institutional demand, where the likes of JP Morgan has lauded the depth of the ETH market that has helped it recover from large correction quite quickly when compared against Bitcoin.

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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Prashant Jha 655 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
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