Why Grayscale Ethereum Trust Is Getting Crushed Today
Shares of Grayscale Ethereum Trust (OTC: ETHE), a fund designed to allow traditional investors to invest in the non-traditional asset known as Ether, are getting crushed today. As of 11:20 a.m. EST, it's down a whopping 18%. By contrast, Ether is only down 3% over the past 24 hours. In theory, the movements shouldn't diverge this much. What gives?
I can objectively say that Grayscale Ethereum Trust is wildly overvalued, and that's probably why shares are falling today. On the fund's own website, under market performance, it explains to investors how much each share is worth. Right now, at the current price of Ether, the fund holds $6.34 worth of Ether per share. However, shares are currently trading hands over $16 per share -- more than double their intrinsic value.
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Source Fool.com
