Grayscale Ethereum Trust's NAV Discount Hits 1-Year Low Amid ETF Applications Surge

Grayscale Ethereum Trust's NAV discount narrows to a one-year low of 26.64% amid a surge in Ethereum ETF applications in the United States.

Posted 8 months ago in Ethereum

An image depicting a line graph charting the Grayscale Ethereum Trust's NAV discount

Grayscale Ethereum Trust's discount to the net asset value (NAV) has reached its narrowest point in the past year, currently hovering at around 26.64%. This comes as the United States experiences a surge in applications for Ethereum exchange-traded funds (ETFs), potentially paving the way for the country's premier spot Ethereum ETF. In September 2022, the NAV discount was 24.53%, marking a similar level of closeness.

The crypto industry previously faced challenges with the collapse of several crypto-centric firms, leading to a peak NAV discount of 60%. However, the situation has shifted since July, when mainstream financial giants like BlackRock proposed a spot Bitcoin ETF and the discount fluctuated between 36% and 46%. The recent influx of Ethereum futures ETF applications to the SEC in early August, along with moves from ARK Invest and 21Shares towards a potential spot ETH ETF, further explains the shrinking NAV discount. Notably, Coinbase has been tapped as a surveillance-sharing partner by Cboe's ETF submission, aligning with the Bitcoin-related application trends.

While asset managers show enthusiasm for an Ethereum ETF, the SEC's approval track record remains a hurdle. No futures or spot Ethereum ETFs have received greenlight from the American watchdog. However, Grayscale's progress in this space offers hope, as newer applications reference their successes and draw inspiration from earlier Bitcoin ETF proposals. ETF specialist James Seyffart from Bloomberg suggests that issuers are pushing the boundaries of the SEC, especially for spot Bitcoin ETFs. Clear outcomes may not emerge until May 2024. Nate Geraci, the President of the ETFStore, believes that we will soon witness combined spot Bitcoin and Ether ETF filings, gradually and then suddenly.

Please note that while this news article aims to provide accurate and timely information, readers are advised to independently verify facts and seek professional advice before making any decisions based on its content.

Last updated 9/9/2023, 6:43:44 PM


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