Grayscale Ethereum Trust is trading with fees of up to 515%

Investors are paying up to 515% to buy Ether through the Grayscale Ethereum Trust.

Investors have to spend $ 90.55 to buy a share in Grayscale Investments' Ethereum Trust (ETHE), however, holding Ether on each of its shares currently costs only $ 16.10. That means investors buy Ether through ETHE at a price 5 times higher than on the open market.

Although the ETHE fee increases and decreases regularly, it is currently significantly higher than the 220% reported in February. The gap is even bigger - 1,150% - when ETHE first started trading on the OTC market in June 2019.

After surpassing $ 1 billion in investment for 2019, Grayscale's ETHE currently manages $ 195.1 million in assets. The market price has increased by 238% in the last three months while its Ether holding has increased by 22% over the same period. However, they have decreased by nearly 7% in the last 12 months and 78% since inception.

ETHE is aimed at investors who are willing to pay more for regulatory oversight and to avoid risk. However, anyone thinking of a potential price gap opportunity, it should be noted that all ETHE stocks require a holding period of one year after they were created. In addition, the trust fund requires all investors to be accredited, with a minimum participation of $ 25,000.

The Grayscale Bitcoin Trust is still considered a ‘digital gold’

The U.S.-based investment firm also provides trust funds for other major cryptocurrencies, including Bitcoin. The Grayscale Bitcoin Trust is the company's largest fund, managing more than $ 2 billion in assets.

The Grayscale Bitcoin Trust is a larger purchase of ETHE, with Bitcoin holdings worth $ 7.04 per share, trading for just $ 7.80 each. Its holdings of Bitcoin have increased in value by nearly 5000% since its inception.


According to Cointelegraph

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