ETHE 51% Discount to NAV
Grayscale Ethereum Trust and Grayscale in general for that matter, has been beaten down this year, with the clearest example identified in the ETHE Discount or Premium to NAV (Net Asset Value) which is down -51% to par. Given the current spot price of Ethereum (at the time of writing) at $1,321, this would put the spot price of each Ethereum held by Grayscale in the trust at ~$673 per Ether. This price per Ether is obviously undervalued and the market will pick this back up as the price of Ethereum returns to mean.
Looking at the weekly time frame, the three easily identifiable lows on this chart are at the end of 2019, 2020, and now 2022. This looks like now to be a great buying opportunity or a place to stack onto your position as we’re closing out the year. From here, I’m expecting a return to par value with the share price of ETHE and that should tick it around $12-13 for a fair price.
This chart combines both technical and fundamental indicators so we’ll see how this goes. The contrarian trade or the opposite end of this play is Grayscale and Coinbase are secretly insolvent and this whole trade is a bust / never returning out any physical Ether to shareholders. I’m buying at these levels for some exposure in my stock trading brokerage as it’s a 51% discount to spot price of physical Ether, again would be the ultimate goblin level lows for Ethereum at $673-688.
As always please do your own research, I am not a financial advisor and this chart is for educational purposes only.
Looking at the weekly time frame, the three easily identifiable lows on this chart are at the end of 2019, 2020, and now 2022. This looks like now to be a great buying opportunity or a place to stack onto your position as we’re closing out the year. From here, I’m expecting a return to par value with the share price of ETHE and that should tick it around $12-13 for a fair price.
This chart combines both technical and fundamental indicators so we’ll see how this goes. The contrarian trade or the opposite end of this play is Grayscale and Coinbase are secretly insolvent and this whole trade is a bust / never returning out any physical Ether to shareholders. I’m buying at these levels for some exposure in my stock trading brokerage as it’s a 51% discount to spot price of physical Ether, again would be the ultimate goblin level lows for Ethereum at $673-688.
As always please do your own research, I am not a financial advisor and this chart is for educational purposes only.
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