The failure of the FTX empire, which was formerly the third-largest cryptocurrency exchange in the world, has apparently affected a significant number of crypto firms and products, the ripples of which are still being felt throughout the industry. As a result of the occurrence, the values of cryptocurrencies have significantly decreased, which in turn has negatively impacted the value of Grayscale’s Crypto Trusts. The sequence of events caused a tidal wave of capitulation, which has resulted in the premium rate of the fund going down on a continuous decline, eventually resulting in the current discount rate of 60%.
Grayscale’s ETHE At 60% Discount
As of right now, the discount to net asset value (NAV) of one of the trust’s most well-known funds, the Ethereum Trust (ETHE), has dropped to a record 60%; marking the fund’s all-time low premium rate since it was first established. After showing signs of progressive improvement throughout the month of September 2022 in the midst of the enthusiasm surrounding the “Ethereum Merge” update, the premium rate for ETHE began to drastically decline by the end of October 2022.
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Furthermore, the discount on the fund increased by more than 33% in just the final month of 2022 by alone. According to information provided by YCharts, the ETHE discount was somewhere around 45% on the first of December, but it skyrocketed to 59.30% at the end of that month.
Grayscale’s Other Crypto Trusts
It is important to note that Grayscale Investments’ primary offering, the Bitcoin Trust (GBTC), has also been selling at historic discounts over the past few months. The GBTC discount is currently somewhere around 45%, which is a modest increase from its all-time high of somewhere around 48%.
According to data received, the other funds under Grayscale are also witnessing heavy discounts — with the Litecoin Trust dropping by 65%, Zcash declining by 47%, and Ethereum Classic’s staggering depreciation of 77%.
However, the only two trusts which are still in positive are the Chainlink & Filecoin Trusts with the premiums being 24% & 108% respectively.
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