Outstanding premium rates for Ethereum are still in action. The Grayscale Ethereum Trust (ETHE) reached a premium of 465% a few days after spot prices caught a major exit.
ETH’s spot price was $ 289, with a new annual peak on February 15, 2020. Ten days later, the Grayscale Ethereum Trust’s market price per share has risen to $ 143, possibly due to demand from institutional investors.
The 465% premium raised 1 ETH to $ 1518, from 0.09464578 per existing share. This unexpected high premium points to institutional investors taking a big step towards digital currencies, especially given yesterday’s collapse.
Grayscale has long been leading the intercompany digital money investment race. Like most corporate investment platforms, Grayscale offers a wide range of investment tools that allow investors to take advantage of them without holding digital money in their hands.
The reason for this increase to be abnormal can only be understood compared to Grayscale’s premium rate on Bitcoin Trust (GBTC). Although Bitcoin is the most sought-after investment asset for both retail and corporations, GBTC has not seen a huge premium increase.
In contrast, Ethereum’s fluctuation was more isolated. When Grayscale added Ethereum to investment tools for the first time in mid-2019, the institutions’ proximity to this cryptocurrency was obvious. After a while, ETHE’s market price per share increased to $ 526 and this increased 1 ETH to 5.557. In other words, institutional investors were open to pay $ 5557 for 1 ETH. This clearly shows the demand for Ethereum, the smart contracts platform.
As of 27 February 2020, ETHE’s total assets under management amount to $ 171.4 million. This is far behind compared to the $ 2.6 billion GBTC.
Also, as of February 2020, Ethereum’s increase in Google searches proved interest in crypto money.
Increasing interest of institutional investors may be related to Grayscale’s investment tools. Grayscale products allow traders to earn their profits without the hassle and risk of holding them.