Grayscale's ETHE shares tumble 50% as Ether skyrockets

A long-term arbitrage play from institutional investors may explain why shares in Grayscale’s Ethereum Trust have tanked by 50% in two weeks while Ether rallied 75%. Shares in fund manager Grayscale Investments’ Ethereum Trust plummeted by 50% this past fortnight, despite Ethereum rallying by 75% over the same period. ETHE shares represent 0.09620794 of an Ether each and are currently trading for $13.80 — roughly a 21% premium over the spot price of ETH. Grayscale’s ETHE shares have been on a roller coaster ride, surging around 500% from $4.20 at the start of October, before topping out at $25 on Dec.

Grayscale Ethereum Trust Announces 9-for-1 Stock Split

Existing shareholders will receive eight additional ETHE shares for each one held, with each new share being a ninth the value and price of the current ones.

ETH 2.0 represents a material risk to Grayscale’s Ethereum Trust, says SEC filing

The uncertainties outlined in the document may offer significant insights for Grayscale's investors. According to the latest SEC disclosure by the Grayscale Ethereum Trust, or ETHE, the impending transition of Ethereum (ETH) to the proof-of-stake consensus represents a risk that could have a “material adverse effect” on its shares. The ETHE recently filed an application with the regulator to become an SEC-reporting company.

Grayscale’s Litecoin and Bitcoin Cash Trusts Trade for Tremendous Premiums

This week data from Arcane Research shows there’s been massive demand for Grayscale’s recently launched publicly traded crypto trusts.