Ethereum

With ETH Making Gains, The Grayscale Ethereum Trust Falls On Hard Times

  • Despite currently being priced at $1118 following a 7.23 percent increase over the past 24 hours, shares in the Ethereum trust from Grayscale shot down by 50% over the past two weeks.
  • ETHE shares represent 0.09620794 of each token which is currently trading for almost $14.

Despite currently being priced at $1118 following a 7.23 percent increase over the past 24 hours, shares in the Ethereum trust from Grayscale shot down by 50% over the past two weeks.

ETHE shares represent 0.09620794 of each token which is currently trading for almost $14.

ETHE shares at Grayscale have been on a wild ride over the past few months. Spiking around 500% at the start of October before hitting a high of $25 on the 22nd of December, the shares have since gone down by half and on the 5th of January saw a low of $12.

On Twitter, the chief executive officer of the TIE, Joshua Frank gave a theory as to why all of this went down the way it has.



The main argument that Frank made was that institutional involvement could be a big trigger as to why Ethereum has been seeing big gains recently. Even speculating that investors are buying the token to close out loans being used to buy shares in the Ethereum trust.

Writing in a hefty Twitter thread, Frank said:

Because of this, he says that this is potentially a big reason as to why the token had a big weekend in the markets.

“This is likely a large part of the reason ETH had a massive run-up this weekend, why ETHE fell today (despite ETH’s massive run this weekend), and why the premium on ETHE has fallen so drastically.”

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