Read on Twitter
I keep seeing on Twitter:
“Why $ETHE has fallen by 40% when $ETH has gone up by 80%?”
Let me explain the premium in a
*Not financial advice*
1/x
“Why $ETHE has fallen by 40% when $ETH has gone up by 80%?”
Let me explain the premium in a
*Not financial advice*
1/x
For the Grayscale Ethereum trust,
1 $ETHE contains 0.01029314 $ETH.
Which can be confirmed on the grayscale website
At market close today:
1 $ETH = $1024
1 $ETHE = $ 12.00
And
0.01029314 $ETH = $10.05
The difference in this case is a premium, which was roughy 13% today
2/x
1 $ETHE contains 0.01029314 $ETH.
Which can be confirmed on the grayscale website
At market close today:
1 $ETH = $1024
1 $ETHE = $ 12.00
And
0.01029314 $ETH = $10.05
The difference in this case is a premium, which was roughy 13% today
2/x
Why premium important?
It dictates how much more you are paying over the underlying asset (ETH). Here you are paying 13% more to gain exposure to $ETH. Over the last few weeks the premium exceeded 100%. Which is double the price of $ETH for equal amount in $ETHE!
3/x
It dictates how much more you are paying over the underlying asset (ETH). Here you are paying 13% more to gain exposure to $ETH. Over the last few weeks the premium exceeded 100%. Which is double the price of $ETH for equal amount in $ETHE!
3/x
The @grayscaletrust bot which is not financial advice, shows how much you are paying at the premium price.
Today Buying 1 $ETHE costed $ 12.00, and 1 $ETH at $1024.
However you actually bought ETH at a price of $1159 which is 13% more due.
4/x https://twitter.com/grayscaletrust/status/1346199792104439809?s=21
Today Buying 1 $ETHE costed $ 12.00, and 1 $ETH at $1024.
However you actually bought ETH at a price of $1159 which is 13% more due.
4/x https://twitter.com/grayscaletrust/status/1346199792104439809?s=21
The $ETHE premium had been well over 100% for a few weeks. Meaning some investors bough Ethereum via $ETHE at a price of over $1600. Meanwhile $ETH was only $600ish.
That is the equivalent of buying Ethereum over the all time high !
5/x https://twitter.com/grayscaletrust/status/1341059479408918530?s=21
That is the equivalent of buying Ethereum over the all time high !
5/x https://twitter.com/grayscaletrust/status/1341059479408918530?s=21
Why is there a premium?
Accredited investors can contribute cash and if I’m not mistaken, “in kind” assets (Ethereum) to purchase shares at 0% premium. Also know as NAV (net asset value). After 6 months they can sell them on the market.
6/x
Accredited investors can contribute cash and if I’m not mistaken, “in kind” assets (Ethereum) to purchase shares at 0% premium. Also know as NAV (net asset value). After 6 months they can sell them on the market.
6/x
