Why is grayscale ETHE down?
But why is Grayscale Ethereum Trust falling today? The most likely explanation is traders know it's been a good run, and they're booking profits now before the end of the year for tax purposes.
The Grayscale Ethereum Trust (ETH) stock holds a sell signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock.
Summary. ETHE doesn't track Ethereum. It is way too expensive.
The Ethereum Investment Trust (ETHE) is an investment product by Grayscale which gives investors and traders exposure to Ethereum (ETH).
In the case of the ETHE:US, an open-end investment trust, it is Ether (ETH).
“An ether ETF will definitely launch this year and will definitely be bullish for ether,” Trey Griggs, CEO of crypto market GSR's U.S. arm, said in a written response.
ETHE is not an ETF by any means, but it can be bought and sold through a U.S. brokerage account as simply as a U.S.-listed ETF—a feature that, for many investors, makes up for the fact that the product sometimes trades at large premiums and discounts to its net asset value.
10/ In the case of many Grayscale products the premiums have been extremely significant, ETHE (the Ethereum product) has traded at a 100%+ premium to NAV for much of its existence.
Differentiating between ETHE and ETCG
First, as per Grayscale, ETHE is "solely and passively invested" in Ethereum (ETH) and enables investors to gain exposure to the cryptocurrency space in the form of security, thus avoiding the buying, storing, and safekeeping challenges.
In terms of individuals, Vitalik Buterin is the most prominent Ethereum whale, and for good reason, too. Buterin co-founded Ethereum in 2014. In October 2018, Buterin disclosed his personal ETH wallet address, allowing enthusiasts to follow his ETH transactions. This address, however, currently only holds 1,366 ETH.
What company owns most Ethereum?
| Stockholder | Stake | Shares owned |
|---|---|---|
| Parkwood LLC | 0.26% | 790,000 |
| Rothschild Investment Corp. | 0.09% | 263,394 |
| Weatherbie Capital LLC | 0.06% | 198,179 |
| Rye Brook Capital LLC | 0.06% | 192,000 |
- Total7137 (100%)
- United States3071 (43.03%)
- Germany802 (11.24%)
- France427 (5.98%)
- Singapore340 (4.76%)
- United Kingdom251 (3.52%)
- Japan240 (3.36%)
- Ireland209 (2.93%)
Ethereum, however, has an infinite supply. In January 2021, there were 113.5 million tokens in circulation. As of April 2022, there are roughly 120 million. There are some predictions that after shifting the Ethereum process from PoW to the PoS, the supply of Ethereum may be reduced.
The average ETH holding per address is ~2.17 ETH. Without the top 10 addresses, the average ETH holding per address is ~1.87 ETH. Without the top 50 addresses, the average holding is ~1.59 ETH [source].
Ledger Nano
Ledger Nano is probably the best Ethereum wallet for mining and storing your Ethereum coins.
As for other differences, ETC has a token issuance cap of between 210 and 230 million, but ETH does not have a limit. Additionally, ETC is based on a Proof-of-Work ("PoW") algorithm, while ETH is to adopt Proof-of-Stake ("PoS") as from 2022, in an upgrade known as Ethereum 2.0.
ETHE is not an ETF by any means, but it can be bought and sold through a U.S. brokerage account as simply as a U.S.-listed ETF—a feature that, for many investors, makes up for the fact that the product sometimes trades at large premiums and discounts to its net asset value.
Grayscale Ethereum Trust is a popular cryptocurrency fund through which investors gain exposure to Ether. Investment in Grayscale Ethereum Trust and other funds is an important measure of institutional interest and confidence in Ether and other cryptocurrencies.
ETHE Net Asset Value: 15.41 for Aug.
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10/ In the case of many Grayscale products the premiums have been extremely significant, ETHE (the Ethereum product) has traded at a 100%+ premium to NAV for much of its existence.
Why is Ethereum Classic so cheap?
Why is Ethereum Classic so cheap? Ethereum Classic is so cheap because it's not in as great demand as Ethereum. Ethereum is a more popular cryptocurrency, so more people want to invest in it. Additionally, the Ethereum blockchain has a larger ecosystem of dapps and is widely used for decentralized finance.
But the main difference between Bitcoin and Ethereum is the use case for each. Put simply, Bitcoin is mostly known as a store of value, and Ethereum supports smart contracts and secure financial transactions.
The Ethereum price prediction for 2022 from Gov Capital anticipated the coin moving to $1,852 by the end of the year, $4,360 by the end of 2023 and $10,711 by the end of 2025.
Shorting using Margin on Exchanges
For people who want to profit from a falling price, short selling is an option where you borrow some ETH that you don't already own from somebody who does, then sell it in the market, hoping to buy it back at a lower price.
As of April 2021, Ethereum, also known as Ether, can be purchased in ETF form. Ether is the second-largest cryptocurrency after Bitcoin, and there are already four Ether ETFs from which to choose. In the ETF form, you can easily trade your crypto inside an online brokerage account.
The Grayscale Bitcoin Trust files audited reports with the securities and exchange commission (SEC) to prove that it has the BTC that investors have paid for. That's an advantage over crypto exchanges, which have the potential to scam people. An example of one such scam is the QuadrigaCX exchange scandal of 2019.
Digital Currency Group (DCG) is a venture capital company focusing on the digital currency market. It is located in Stamford, Connecticut. The company has five subsidiaries which are CoinDesk, Foundry, Genesis, Grayscale Investments, and Luno.
The Bottom Line. In the coming weeks, the Grayscale Bitcoin Trust may very well become the world's first true Bitcoin ETF, giving crypto a much-needed victory during the 2022 slump and its biggest milestone since the Coinbase IPO. However, at the end of the day, it's essentially just a way to buy Bitcoin like a stock.
Grayscale offers large discount
Because of the lack of demand and constantly occurring selling pressure, Grayscale's Ethereum and Bitcoin funds are trading with a massive discount on NAV, which makes them potentially attractive for investors who have not yet received exposure to the market via spot assets.
ETHE currently trades at an ~8% discount to NAV, including the 2.5% management fees.
How many bitcoin does grayscale have?
GBTC holds roughly 3.4% of the world's bitcoin and is owned by more than 850,000 U.S. accounts, according to Grayscale.
