It’s been a wild ride for Grayscale Ethereum Trust (GETH) investors.
The fund, which launched in April 2017, was the first publicly traded fund to offer exposure to ethereum. For a while, it was the only way for investors to get exposure to the popular digital currency without buying it directly.
The fund’s popularity coincided with a rally in ethereum prices. From its launch through mid-January 2018, the price of ethereum rose from about $8 to almost $1,400.
GETH’s share price followed suit, rising from about $25 at its launch to a peak of nearly $1,700 in December 2017.
But then came the crash. By mid-March 2018, ethereum had fallen back below $400 and GETH’s share price had fallen to about $700.
The sell-off continued over the next year, with ethereum falling below $100 and GETH falling below $10 by December 2018.
So what happened?
There are a few factors that contributed to the decline of both ethereum and GETH.
NOTE: WARNING: Potential investors should be aware that Grayscale Ethereum Trust is no longer actively traded and is no longer available for purchase. The Trust is now closed to new investors and only those who have already purchased shares may continue to hold their positions. Any investor who attempts to purchase or sell the Trust will not receive a response from the broker or any other party involved in the transaction. Investors should also be aware that Grayscale Ethereum Trust does not provide any assurance of potential value or return on investment. It is also important to remember that Grayscale Ethereum Trust is a speculative investment, and risks associated with investing in cryptocurrencies still apply.
First, the initial coin offering (ICO) market, which was a major use case for ethereum, dried up in 2018. This was due to a combination of regulatory crackdowns and a general loss of interest in ICOs as a investment vehicle.
Second, the cryptocurrency market as a whole went through a major correction in 2018. This was due to a variety of factors including concerns about regulation, overvaluation, and general market saturation.
Third, ethereum’s own development roadmap ran into delays. The long-awaited release of the Ethereum 2.
0 upgrade was pushed back from 2019 to 2020 (and possibly beyond). This led to increased investor skepticism about the future of the platform.
All of these factors combined to lead to a perfect storm for GETH investors. With the ICO market dead and ethereum’s price in freefall, there was little reason to own GETH shares.
And without any major catalysts on the horizon, it’s unlikely that things will change anytime soon.
7 Related Question Answers Found
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.
Grayscale Ethereum Classic Trust is an investment vehicle that provides exposure to the price movement of ETC, without the challenges of buying, storing, and safekeeping ETC. The investment objective of the Trust is for the Shares to track the price of ETC, less the expenses of the Trust’s operations. The Trust’s expenses will be incurred by Grayscale and will include management fees, Bitcoin transaction fees and other general expenses.
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.
GrayScale Ethereum Trust is an investment product that allows investors to gain exposure to the price movement of ETH, without having to directly purchase or hold the underlying asset. The trust is currently one of the largest and most popular products in the digital currency space, with over $2 billion in assets under management. The trust is structured as a private placement and is only available to accredited investors.
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.
Grayscale Ethereum Fund is an investment fund that offers exposure to the price movement of ETH, the native cryptocurrency of the Ethereum network. The fund is managed by Grayscale Investments, LLC, a digital currency asset manager. The fund was launched in April 2017 and is currently one of the largest investors in Ethereum.
Since Ethereum is a decentralized platform that runs smart contracts, most people think of it as a digital currency. However, Ethereum has many other uses. One of these is Grayscale Ethereum Trust (GETH), an investment product that gives investors exposure to the price movement of ETH without having to actually purchase and hold the cryptocurrency.
