It’s no secret that Grayscale Ethereum Trust (GETH) has been trading at a discount to its net asset value (NAV) for some time now.
The premium or discount that a closed-end fund (CEF) trades at relative to its NAV is an important metric for CEF investors to watch. A fund trading at a discount is generally considered to be a bargain, while a fund trading at a premium is considered to be expensive.
The current discounts of popular CEFs can be seen in the table below. As you can see, GETH is trading at a 9.
71% discount to its NAV, while the average premium/discount for all CEFs in the table is 0.61%. .
So, why is GETH trading at such a large discount? And is this discount justified?
There are several reasons why GETH might be trading at a discount. First, as a newer CEF, GETH doesn’t have the same track record as some of the other funds in the table.
NOTE: WARNING: Trading in the Grayscale Ethereum Trust (GET) is a high risk investment. Investing in GET involves significant risks, including a lack of liquidity, no guarantee of returns, and potential illiquidity due to market volatility. Additionally, trading at a discount may lead to losses if the discount is not justified by market forces and may be indicative of underlying problems with the trust or its underlying asset. As such, investors should exercise caution when considering investing in GET and should seek professional advice before making any decisions.
This lack of history may make investors hesitant to pay NAV for the fund.
Second, GETH’s strategy of investing in Ethereum (ETH) may be perceived as riskier than the strategies of some of the other funds in the table. For example, The Gabelli Gold Fund invests in gold bullion, which is considered by many to be a safe haven asset.
In contrast, ETH is a relatively new and volatile asset that doesn’t have the same track record as gold.
Finally, it’s worth noting that GETH isn’t the only CEF trading at a discount. As you can see from the table, there are several other funds trading at discounts to their NAVs.
So, is GETH’s discount justified? That’s hard to say. While there are some reasons why GETH might trade at a discount, it’s also possible that the discount is simply due to investor sentiment and will eventually disappear.
Only time will tell.
9 Related Question Answers Found
As of late, Ethereum Classic (ETC) has been on the up and up. The price of ETC has more than doubled in the last month, and it doesn’t seem to be slowing down. This surge in price has led many investors to ask the question – is Grayscale Ethereum Classic Trust (GEC) a good investment?
Grayscale Ethereum Trust (GETH) is an investment vehicle for buying and holding Ethereum. It is one of the products offered by Grayscale Investments, LLC, a digital currency asset management firm. Investors in GETH receive exposure to the price movements of Ethereum, but do not have the ability to interact with the underlying blockchain or use Ethereum’s decentralized applications.
The Grayscale Ethereum Trust is a fund that invests in Ethereum. The trust is managed by Grayscale Investments, LLC. The fund’s objective is to track the performance of the price of Ethereum.
The premium on Grayscale Ethereum Trust (GETH) is an annual charge assessed by the Trustee to cover the costs of running the Trust. The premium is paid by investors who hold GETH shares, and it is assessed at a rate of 2% of the net asset value of the Trust. The premium is used to cover the cost of storage, insurance, and other expenses associated with running the Trust.
The short answer is no. You can buy $DG with any cryptocurrency that you own. However, if you want to buy $DG with fiat currency (USD, EUR, etc.), you will need to purchase Ethereum first and then use that Ethereum to buy $DG.
Grayscale Investments, the world’s largest digital currency asset manager, has filed to list its Ethereum Trust on the OTCQX Best Market, according to a press release on Tuesday (March 2). This move comes after the successful launch of the Grayscale Bitcoin Trust (OTCQX: GBTC) on the OTCQX in 2015 and marks another step in the company’s mission to make digital currency investing mainstream. The Ethereum Trust will trade under the ticker “ETHE” and will be available to accredited investors.
When it comes to digital currencies, there are a lot of different options out there. But, one of the most popular is Ethereum. So, does Ethereum stock pay dividends?
Grayscale Ethereum Trust is not the same as Ethereum. While both are digital assets and can be used for investment purposes, there are several key differences between the two. For one, Grayscale Ethereum Trust is a trust that invests solely in Ethereum.
An exchange-traded fund (ETF) is a type of investment fund that holds a collection of securities, such as stocks, bonds, or commodities, and trades on a stock exchange. ETFs are similar to mutual funds, but they differ in some important ways. For example, ETFs are traded throughout the day on stock exchanges, while mutual fund shares are bought and sold only once a day, after the market closes.
