With the market’s reduced expectations for the approval of the Ethereum spot ETF by the US SEC in May, the premium of Grayscale’s Ethereum Trust (ETHE) has reached -20.43%. Is now a good time to buy ETHE?
Grayscale Ethereum Trust’s Negative Premium at -20.43%
Is now a good time to buy ETHE?
How to purchase ETHE?
After the SEC approved multiple Bitcoin spot ETFs in January, giving the market optimism that the SEC would also approve an Ethereum spot ETF in May, Bloomberg ETF analyst James Seyffart, who had previously made judgments on the Bitcoin spot ETF review process, expressed concerns about the possibility of 8 Ethereum spot ETFs being approved in a post on May 20.
Grayscale Ethereum Trust’s Negative Premium at -20.43%
With the market’s reduced expectations for the approval of Ethereum spot ETH in May, data from ycharts shows that the premium of Grayscale Ethereum Trust (ETHE) has expanded to 20.43%, reaching the highest discount level since November 2023.
Grayscale ETHF negative premium. Image source: ycharts
Is now a good time to buy ETHE?
On the other hand, if you believe that Grayscale’s Ethereum Trust (ETHE) will eventually be approved by the SEC, now may be a good time to get in. For Grayscale’s Bitcoin Trust (GBTC), investors who bought in during a large premium have seen greater profits during the transition from GBTC to a spot Bitcoin ETF. Currently, ETHE has a negative premium of 20.43%. If the Ethereum spot ETF is approved as expected this year, the negative premium of ETHE will narrow, and investors who buy now will essentially be purchasing ETH at a discounted price. However, it is still necessary to observe whether ETHE will replicate GBTC’s situation, and even if the ETF is approved, it is important to consider whether the price of the Ethereum spot ETF will continue to rise.
How to purchase ETHE?
ETHE was established on December 13, 2017, and listed for trading in July 2019. It is regulated by the US SEC and is an exchange-traded fund that can be traded through a regular securities account in the US. However, for Taiwanese individuals, it is necessary to open an overseas brokerage account and conduct international remittance, which requires attention to bank wire transfer fees. In addition, ETHE also incurs fees to Grayscale, which is an additional cost consideration.
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