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

News
Wed, 06/03/2020 - 11:26
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?
Cover image via stock.adobe.com
Contents

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).

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.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
Cover image via stock.adobe.com
Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
Related
Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

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.)