Grayscale Ethereum Trust Premium Flips Positive Amidst Spot ETF Expectations

IconCryptoNewsTerminal Staff05 Jul, 2024

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Grayscale Ethereum Trust Premium Flips Positive Amidst Spot ETF Expectations

Grayscale Ethereum Trust (ETHE), the largest publicly traded investment vehicle for Ethereum (ETH), has flipped into a positive premium as of July 3, 2023. The ETHE premium has been negative for the past three years, but it has started narrowing since mid-December 2022 with growing anticipation for a spot Ethereum ETF and amid the crypto market downturn. The discount widened again in March through May before narrowing once more after the SEC allowed a Form 19b-4 filing for a spot ETH ETF from the likes of BlackRock. As of July 3, ETHE traded at a positive premium of 0.31%, indicating that investors are willing to pay a premium to invest in Ethereum through the trust. This positive premium flip could be a sign of growing confidence in the long-term prospects of Ethereum and the potential launch of a spot ETF, which would make it easier for investors to gain exposure to the digital asset.

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