- The price of the Grayscale Ethereum Trust (ETHE) has dropped by over 50% this week.
- Coin Metrics co-founder Nic Carter said that this is sad news or retail investors that didn’t do their diligence.
- Carter attributed the decline to accredited investors liquidating their holdings after the mandatory lockup period ended.
The price of the Grayscale Ethereum Trust (ETHE) has dropped by over 50% this week despite the rise in ETH’s prices. According to Bloomberg, Nic Carter, the co-founder of Coin Metrics, attributed the decline to accredited investors (like hedge funds) liquidating their holdings after their mandatory 12-month lockup for investment into the trust ended.
Carter added that “extremely inefficient situations can develop like the one we’ve seen recently,” and that this was bad news for retail investors that didn’t do their diligence. According to him, shares of the Grayscale Ethereum Trust are available to institutional and accredited investors and were trading at an 800% premium to the net asset value.
While the price of ETHE shares fell from over $200 to $83 before recovering a little to reach $90 this week, its underlying cryptocurrency performed differently. As previously reported by FX Street, ETH/USD has dropped by >5% over the last four days.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Coin Metrics co-founder Nic Carter said that this is sad news or retail […]