Ethereum (ETH) sold at 1700% premium to Grayscale investor

29 Jun, 2019
by David Robb
Ethereum
Ethereum (ETH) sold at 1700% premium to Grayscale investor

Institutional investment service Grayscale has been charging higher premiums for the top cryptocurrencies recently. Data shows that, a few days ago, one investor paid the equivalent of a 17x premium to have some exposure to Ethereum (ETH).

The Grayscale platform works by offering users 'shares' in particular crypto funds, instead of holding the tokens directly. Investors pay a premium as there are only a limited number of shares available, and Grayscale also makes an extra fee on top in exchange for managing custody of the cryptos, meaning investors don't have to deal with security issues.

Launched earlier this month after gaining FINRA approval back in May, the Grayscale Ethereum Trust is now offering shares for around $130, according to data from Yahoo Finance. The ETHE shares are backed by 0.096 ETH, worth around $30 at current prices. The trust is currently managing a total of $29.4 million, with a total of $2.7 billion invested in Grayscale's various crypto funds.

On June 27, shares were being sold for just under $240, and the price peaked on June 26 at around $500. This was over 16 times the price of 0.096 ETH, and if it was scaled up to 1 ETH, it would be a price over three times that of Ethereum's all-time high in January 2018.

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