Ethereum (ETH) Grayscale Trust Stocks Surge 60% in Two Days. What Does This Mean?

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Wed, 06/03/2020 - 11:26
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Vladislav Sopov
Stocks of the Ethereum Grayscale Trust (ETHE), which allows investing in the cryptocurrency market without buying digital assets, have gone through the roof
Ethereum (ETH) Grayscale Trust Stocks Surge 60% in Two Days. What Does This Mean?
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Grayscale Ethereum Trust (OTCQX: ETHE) is a unique mechanism designed to let investors gain exposure to crypto markets within traditional investment instruments. In the past days, its price pump has outperformed Ethereum's (ETH) by orders of magnitude.

Revolutionary tool or FOMO bubble?

The price of ETHE closed the previous month below the $120 level, but in the first days of June it has gained enormous steam. The ETHE price revisited February highs and is now changing hands at $177.

ETHE price surged 60% in two days
Image by Grayscale

Its Ethereum (ETH) holdings (USD equivalent) per share numbers are also relatively high: $22.78 per share. This means that each stock is correlated with 0.09 ETH in Grayscale holdings.

The ETHE price is about 0.75 Ether. As a result, investors' 'valuation' of one Grayscale Ether is about $1,800.

This contradiction was noticed in a tweet by the Ethereum (ETH) contributor Alexander Fischer, the organizer of the Michigan Ethereum Meetup.

Alexander Fischer, Ethereum contributor, is fascinated by ETHE price rally
Image via Twitter

Commenters on his account believe that this may mean that Ethereum (ETH) is heavily undervalued. 

Alarming hype

Seasoned investor Andrew Kang believes that such a huge influx of money into an Ether-based instrument will fuel its short-term run. So, ETH holders may be bullish on this asset.

Andrew Kang: Short-term bullish
Image via Twitter

Other opinions insist that this is a bubble for boomers. Such an overhyped product could end up in a bearish reversal, they highlight.

The Grayscale investment giant is a pioneer in bridging traditional investment instruments and the digital assets market. At the moment, it offers stocks from nine single-coin trusts (Bitcoin (BTC), Ethereum (ETH), XRP, ZCash (ZEC) and more) as well as a diversified Digital Large Cap Trust.

ETHE Stocks are traded on the over-the-counter platform OTCQX (also Pink).

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)