Data from TradingView shows that Grayscale Ethereum Trust’s current transaction price is much higher than Ethereum’s net asset value, and the annual growth rate has reached an astonishing 677%.
Crypto media NewsBTC believes that although it is difficult to determine whether the sharp increase in the trust price comes from institutional investment or individual investment, traders should be cautious when investing in such a high-priced product.
The trust is becoming one of the most profitable trusts in the crypto industry. This investment tool has been approved by the regulatory agency FINRA and can be used by individuals and institutional investors.
As the basic asset of Grayscale Ethereum Trust, Ethereum’s increase in 2020 is only 84%, which makes the trust’s yield of 677% seem incredible.
EthHub co-founder Anthony Sassano said that Grayscale released a detailed report on Ethereum in February, calling the cryptocurrency a “value store.” This may have driven up the price of the trust.
Market data confirms this theory. After the report was released, the price of Grayscale Ethereum Trust began to soar, which is likely due to the influx of new funds.
Despite the huge premium of the trust fund, Grayscale still tweeted that qualified investors can continue to buy Grayscale Bitcoin Trust and Grayscale Ethereum Trust.
Grayscale Investments managing director Michael Sonnenshein previously tweeted that although the covid-19 epidemic caused the global economy to weaken, family offices, registered investment advisers (RIAs), hedge funds and other institutions are rapidly pouring into the cryptocurrency space.
He also said that he has never seen such a large amount of money flowing into Grayscale’s cryptocurrency funds.