• The Grayscale Ethereum Trust (ETHE) attained a premium to NAV of 0.31% on July 3.
  • The ETHE discount shrank significantly when the SEC approved eight 19b-4 forms.

Before the expected introduction of spot Ethereum exchange-traded funds (ETFs) in the US. The Grayscale Ethereum Trust (ETHE) is no longer trading at a discount to net asset value (NAV).  Data from YCharts shows that on July 3, ETHE, which had traded at a discount for the previous three years, attained a premium to NAV of 0.31%.

The premium or discount to net asset value (NAV) shows the relative worth of each share relative to the ether it represents, relative to the market price.

With the debut of Bitcoin ETFs in January. And increasing speculation about the possibility of spot Ethereum ETFs being approved by the US SEC. The ETHE discount has been shrinking since the crypto bear market bottom in December 2022. 

Investors Getting Ready for Spot Ether ETF

The ETHE discount shrank significantly when the SEC approved eight 19b-4 forms for spot Ethereum ETFs on May 23. The ETHE discount had previously widened between March and May.

Before trading can commence, however, issuers must ensure that their S-1 registration filings are approved by the regulator. This is anticipated to occur in the coming weeks, although up until recently, ETHE was trading at a little discount to NAV.

Since shareholders in the Ethereum Bitcoin Trust can’t redeem their shares for the moment. They have to offer them to other potential buyers. Nonetheless, prior to the 2021 crypto credit crisis, it traded at a premium.

Similar to how investors flocked to the Grayscale Bitcoin Trust ( GBTC ) before it’s January ETF conversion. The closing of the discount suggests that the spot Ethereum ETFs are about to be launched, and investors appear to be buying up the discounted shares in anticipation of a possible Ethereum Trust ETF conversion.

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