Why is Grayscale Ethereum Trust (ETHE) Falling From Highs?

Cryptocurrency trusts have emerged as a convenient vehicle for investors who want to get exposure to leading digital assets. One such is the Grayscale Ethereum Trust (OTC: ETHE), which is a fund that is meant for investors interested in getting exposure to Ethereum.

Why is Grayscale Ethereum Trust (ETHE) Falling From Highs?

However, on Thursday, the Grayscale ETF plunged by as much as 17.50% even though Ethereum experienced a decline of only 3%.

Experts believe that GET is substantially overvalued and that is possibly the main reason behind the steep decline. In order to get a better understanding, it needs to be pointed out that the share price is worth $6.24 of Ethereum each.

However, the ETF was being snapped up at $16 a share and that points to the fact that the share price is trading at a much higher level than the underlying asset. Hence, in case of possible overvaluation, it might not come as a complete shock if the ETF price continues to correct.

Why is Grayscale Ethereum Trust (ETHE) Falling From Highs?

Richard McEntire

Finance and Entertainment ReporterRichard is a bottle of wine - the older the sweeter. He has already found the sweetest hobby in writing entertainment and finance news for Own Snap. Readers get the updated posts regularly from him searching for real-time news.