The trading of Grayscale Investments‘ Ethereum Investment Trust shares, or ETHE, has a premium of 750% above the market rate of its underlying asset in the secondary markets, according to data published by Messari, the cryptanalyst company.
Grayscale’s fund premium has risen sharply since the beginning of the year, with ETHE shares trading at 220% of Ether’s spot price (ETH) in February.
The trust offers exposure to ETH without investors having to manage or guard crypto-currency and has been favored among institutional investors.
An investor claims there’s no way to get money out of the Grayscale Bitcoin Trust
ETHE’s premium is extended
ETHE shares have recently been trading at a price of $2,905 per ETH, 46% above the historical highs of Ether’s spot market prices.
The share premium on Ethereum has continued to rise in recent months, with ETHE trading at the beginning of April 550% above spot prices.
The widening gap appears to have been driven by growing institutional demand for Ether prior to the launch of ETH 2.0, with Grayscale purchasing $110 of ETH by 2020 so far.
Top kryptonews of the week: Grayscale buying a lot of Bitcoin, Satoshi Nakamoto could have been an Escobar employee and much more
In a recent interview, Grayscale’s director of investor relations, Ray Sharif-Askary, noted that 38% of the company’s clients are now exposed to more than one crypto asset, compared to 9% a year ago.
Grayscale’s BTC buildup outpaces supply
Grayscale’s Etoro investment fund has greatly increased its backlog this year, going from buying in at a rate equal to 33% of new Bitcoins (BTC) being mined in the first quarter to absorbing the coins at a rate 1.5 times faster than they are being mined after halving.
Grayscale is buying more than just Bitcoin
Since the block reward was halved due to halving, the trust has already purchased 19,000 Bitcoins: nearly $178.6 million of BTC accumulation in approximately five weeks.