The Grayscale Ethereum Trust (ETHE) has reached a record discount of 59.39% compared to the price of Ethereum ETH/USD, according to data from YCharts.
While the fund previously traded at a premium to ETH, it has consistently been at a discount since November 2021.
ETHE, which is managed by Grayscale Capital, allows traditional investors to gain exposure to Ethereum without directly investing in the cryptocurrency.
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The fund has some $3.6 billion in assets under management. It lost approximately 68.37% of its value in 2021 due to the decline in ETH and other crypto assets.
Grayscale’s Bitcoin Trust GBTC is facing similar issues. Shares are currently trading at a 45.17% discount to the price of Bitcoin BTC/USD, according to YCharts.
While investors can sell their shares in these funds at any time, they do not have access to the underlying cryptocurrency.
Grayscale has been seeking approval to convert its cryptocurrency funds into exchange-traded funds, which would allow them to be traded on public stock markets and potentially improve their liquidity.
Dutch cryptocurrency exchange Bitvavo claimed that Grayscale and its parent company Digital Currency Group (DCG) were “experiencing liquidity problems.”
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