He Grayscale Ethereum Escrow (ETHE) is trading at a record discount rate of 59%, according to data shared by crypto influencer DB.
The Grayscale Trust pools money from institutions that want to invest in various cryptocurrencies but want to avoid the challenges of buying, storing, or custody of their cryptocurrencies. Funds raised under ETHE are used to purchase Ethereum (ETH) to expose institutional investors to ETH on a passive basis.
There are currently $3.6 billion in assets under the ETHE group collected from 31 million shares. The ETH per share is around 0.0097 ETH and the market price per share is $4.77.
Community Concerns About Grayscale
According to the data, ETHE is not the only Grayscale fund that is struggling. On Dec. 8, Grayscale Bitcoin Trust (GBTC) hit a record discount of 49.20%. The GBTC has healed only slightly since then, at a discount rate of 45.
Grayscale has recently faced speculation about its financial stability. On November 16, Grayscale’s sister company Genesis halted withdrawals, raising questions about insolvency. Soon after, reports revealed that the parent institutions of both companies owed Genesis around $2 billion in debt.
Although Grayscale’s partner Coinbase assured the community that Grayscale had enough Bitcoin (BTC) to remain liquid, Grayscale refused to provide proof of its BTC reserves, which did little to allay community concerns.
