As noted by ETF analyst Nate Geraci, the Grayscale Ethereum Trust discount has sunken to 1.45% from a high of almost 50% in one year.
As noted by ETF analyst Nate Geraci, the Grayscale Ethereum Trust discount has sunken to 1.45% from a high of almost 50% in one year.
Such a surprising development is due to the approval of a large number of Ethereum exchange-traded funds.
Just a month ago, the fund was trading at a discount of more than 20% to net asset value (NAV). However, the U.S. Securities and Exchange Commission made a sharp 180-degree turn by approving several Form 19b-4s. The sudden reversal surprised seasoned market watchers who were expecting the SEC to reject Ether spot ETF filings and paved the way for a major price rally in May.
However, it should be noted that these products have not yet begun to be marketed, as their approval is a two-step process. Now, the SEC has to greenlight numerous S-1 registration forms. As reported by U.TodaySEC Chairman Gary Gensler said he expected the products to launch this summer without giving a more precise timeline.
Geraci recently suggested that final approval of Bitcoin ETF products could take place as early as next week.
Earlier this week, potential ETF issuers, including BlackRock, Fidelity and Grayscale, sent their updated presentations.
Will Grayscale reduce fees?
Grayscale’s GBTC found it difficult to compete with other heavyweight ETFs like BlackRock and Fidelity due to its exorbitant fees that are five times higher than the average fee of the other products (0.3%). Grayscale refused to reduce fees on its crown jewel despite facing massive capital outflows.
While some believe that Grayscale could now move to reduce fees to record horrendous capital outflows, Geraci does not believe that will be the case. The analyst has predicted that Grayscale will conduct the fee war through the Ethereum Mini Trust.
Additionally, Geraci doesn’t expect Grayscale’s Ether ETF to see massive outflows: “I think there will be decent outflows, but not as bad as what we saw with GBTC.”
