{"id":280629,"date":"2021-01-06T07:39:12","date_gmt":"2021-01-06T12:39:12","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=280629"},"modified":"2021-01-06T07:40:57","modified_gmt":"2021-01-06T12:40:57","slug":"ethereum-sees-75-eth-skyrocket-as-grayscales-ethe-drops-by-50","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/ethereum-sees-75-eth-skyrocket-as-grayscales-ethe-drops-by-50","title":{"rendered":"Ethereum Sees 75% ETH Skyrocket As Grayscale\u2019s ETHE Drops By 50%"},"content":{"rendered":"<p>The Ethereum Trust of Grayscale Investment, the fund manager, had seen a catastrophic plummet of 50% within the past two weeks. This, however, seemingly has nothing to do with Ethereum\u2019s price, as Ether managed to rally by 75% in that same period of time.<\/p>\n<h2>ETHE And ETH No Longer As Tethered To Each Other<\/h2>\n<p>Each share of Ethereum Trust (ETHE) represents exactly 0.09620794 Ether apiece. As it stands now,\u00a0 these shares are being traded for around $13.80, which is still a 21% premium over ETH\u2019s spot price.<\/p>\n<p>It should be noted, however, that ETHE\u2019s share prices have been quite a chaotic rollercoaster ride. The coin saw a 500% surge between October and December of last year, going from just $4.20 to a whopping $25 a share. Now, however, these shares have halved themselves in value, with the 5th of January reporting lows as little as $12.<\/p>\n<h2>Joshua Frank: It Could Be Institutional Players\u2019 Fault<\/h2>\n<p>Joshua Frank stands as the CEO of TheTie, a crypto data aggregator of note. Frank has opted to go to Twitter in order to try and explain why ETHE saw the massive drop that it did.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">1\/<\/p>\n<p>A large number of Grayscale&#39;s ETHE investors via private placements received their shares today.<\/p>\n<p>ETH&#39;s run the last few days might be in large part due to those institutions buying ETH to cover their loans. <a href=\"https:\/\/t.co\/qoelppNgzQ\">https:\/\/t.co\/qoelppNgzQ<\/a><\/p>\n<p>&mdash; Joshua Frank (@Joshua_Frank_) <a href=\"https:\/\/twitter.com\/Joshua_Frank_\/status\/1346189066568667138?ref_src=twsrc%5Etfw\">January 4, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Frank\u2019s argument is that Ether\u2019s recent gains could be attributed to institutional arbitrage. According to Frank, this could probably be pegged on investors buying up ETH in order to close up the loans that were used to purchase ETHE shares, to begin with.<\/p>\n<p>Frank suggests that many investors of the Ethereum Trust had opted to borrow Ethereum at an annual interest rate of approximately 8%. From there, they used these borrowed assets to purchase shares of ETHE, in turn. They did so at an equivalent of the ETH spot price in order to leverage the monumental price premium opportunity that was presented thanks to ETHE. In late December, ETHE was seen trading at a 100% premium of its value over Ether back in December.<\/p>\n<h2>A Good Bit Of Business<\/h2>\n<p>With many of these investors\u2019 shares\u2019 lock-up period expiring, Frank has concluded that these investors have opted to sell their ETHE share holdings, using that same fund to purchase Ether on the spot markets. This would close their positions entirely and give them a nice profit, in turn.<\/p>\n<p>According to Frank, this could be the driving force behind ETHE\u2019s massive drop being in tandem with ETH\u2019s massive rise, as institutional players are selling ETHE, driving the value down, and using that to buy ETH, driving the value up. It\u2019s basic business, and a shrewd strategy, to say the least. With luck, however, this won\u2019t throw ETH into a violent correction somewhere in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"fin-excerpt\">The Ethereum Trust of Grayscale Investment, the fund manager, had seen a catastrophic plummet of 50% within the past two weeks. This, however, seemingly has <a class=\"read-more-link\" href=\"https:\/\/insidebitcoins.com\/news\/ethereum-sees-75-eth-skyrocket-as-grayscales-ethe-drops-by-50\" title=\"Ethereum Sees 75% ETH Skyrocket As Grayscale\u2019s ETHE Drops By 50%\">[&#8230;]<\/a><\/div>","protected":false},"author":1717,"featured_media":273154,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[7596],"tags":[7598,7600,5982,7599,7893],"class_list":["post-280629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-crypto","tag-eth","tag-ethereum","tag-market","tag-trading"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.8 (Yoast SEO v23.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ethereum Sees 75% ETH Skyrocket As Grayscale\u2019s ETHE Drops By 50%<\/title>\n<meta name=\"description\" content=\"Frank suggests that many investors of the Ethereum Trust had opted to borrow Ethereum at an annual interest rate of approximately 8%.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ethereum Sees 75% ETH Skyrocket As Grayscale\u2019s ETHE Drops By 50%\" \/>\n<meta property=\"og:description\" content=\"Frank suggests that many investors of the Ethereum Trust had opted to borrow Ethereum at an annual interest rate of approximately 8%.\" \/>\n<meta property=\"og:site_name\" content=\"InsideBitcoins.com\" \/>\n<meta property=\"article:published_time\" content=\"2021-01-06T12:39:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-06T12:40:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/09\/Ethereum.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1440\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ali Raza\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ali_r1272\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ali Raza\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629#article\",\"isPartOf\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629\"},\"author\":{\"name\":\"Ali Raza\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/person\/542f9bb7fcd1a45cdfd54e377a73fb2d\"},\"headline\":\"Ethereum Sees 75% ETH Skyrocket As Grayscale\u2019s ETHE Drops By 50%\",\"datePublished\":\"2021-01-06T12:39:12+00:00\",\"dateModified\":\"2021-01-06T12:40:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629\"},\"wordCount\":447,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/insidebitcoins.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629#primaryimage\"},\"thumbnailUrl\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/09\/Ethereum.jpeg\",\"keywords\":[\"Crypto\",\"ETH\",\"Ethereum\",\"Market\",\"Trading\"],\"articleSection\":[\"Breaking Crypto News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629#respond\"]}],\"copyrightYear\":\"2021\",\"copyrightHolder\":{\"@id\":\"https:\/\/insidebitcoins.com\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629\",\"url\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629\",\"name\":\"Ethereum Sees 75% ETH Skyrocket As Grayscale\u2019s ETHE Drops By 50%\",\"isPartOf\":{\"@id\":\"https:\/\/insidebitcoins.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629#primaryimage\"},\"image\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629#primaryimage\"},\"thumbnailUrl\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/09\/Ethereum.jpeg\",\"datePublished\":\"2021-01-06T12:39:12+00:00\",\"dateModified\":\"2021-01-06T12:40:57+00:00\",\"description\":\"Frank suggests that many investors of the Ethereum Trust had opted to borrow Ethereum at an annual interest rate of approximately 8%.\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629#primaryimage\",\"url\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/09\/Ethereum.jpeg\",\"contentUrl\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/09\/Ethereum.jpeg\",\"width\":2560,\"height\":1440,\"caption\":\"Crypto Exchange Volumes Rise, Investors Flock Back to the Market\"},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/insidebitcoins.com\/#website\",\"url\":\"https:\/\/insidebitcoins.com\/\",\"name\":\"InsideBitcoins.com\",\"description\":\"Search &amp; Compare Brokers within Crypto, Forex &amp; Stocks\",\"publisher\":{\"@id\":\"https:\/\/insidebitcoins.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/insidebitcoins.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/insidebitcoins.com\/#organization\",\"name\":\"InsideBitcoins\",\"url\":\"https:\/\/insidebitcoins.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/07\/insidebitcoins.svg\",\"contentUrl\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/07\/insidebitcoins.svg\",\"width\":195,\"height\":32,\"caption\":\"InsideBitcoins\"},\"image\":{\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/person\/542f9bb7fcd1a45cdfd54e377a73fb2d\",\"name\":\"Ali Raza\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2024\/04\/avatar_user_1717_1714353205-96x96.jpeg\",\"contentUrl\":\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2024\/04\/avatar_user_1717_1714353205-96x96.jpeg\",\"caption\":\"Ali Raza\"},\"description\":\"Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali\u2019s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Business2Community, BeinCrypto, and more.\",\"sameAs\":[\"https:\/\/www.linkedin.com\/in\/alirazak\/\",\"https:\/\/x.com\/ali_r1272\"],\"knowsAbout\":[\"Cryptocurrency\",\"Fintech\",\"Finance\"],\"jobTitle\":\"Editor\",\"url\":\"https:\/\/insidebitcoins.com\/author\/aliraza\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Ethereum Sees 75% ETH Skyrocket As Grayscale\u2019s ETHE Drops By 50%","description":"Frank suggests that many investors of the Ethereum Trust had opted to borrow Ethereum at an annual interest rate of approximately 8%.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629","og_locale":"en_US","og_type":"article","og_title":"Ethereum Sees 75% ETH Skyrocket As Grayscale\u2019s ETHE Drops By 50%","og_description":"Frank suggests that many investors of the Ethereum Trust had opted to borrow Ethereum at an annual interest rate of approximately 8%.","og_site_name":"InsideBitcoins.com","article_published_time":"2021-01-06T12:39:12+00:00","article_modified_time":"2021-01-06T12:40:57+00:00","og_image":[{"width":2560,"height":1440,"url":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/09\/Ethereum.jpeg","type":"image\/jpeg"}],"author":"Ali Raza","twitter_card":"summary_large_image","twitter_creator":"@ali_r1272","twitter_misc":{"Written by":"Ali Raza","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629#article","isPartOf":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629"},"author":{"name":"Ali Raza","@id":"https:\/\/insidebitcoins.com\/#\/schema\/person\/542f9bb7fcd1a45cdfd54e377a73fb2d"},"headline":"Ethereum Sees 75% ETH Skyrocket As Grayscale\u2019s ETHE Drops By 50%","datePublished":"2021-01-06T12:39:12+00:00","dateModified":"2021-01-06T12:40:57+00:00","mainEntityOfPage":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629"},"wordCount":447,"commentCount":0,"publisher":{"@id":"https:\/\/insidebitcoins.com\/#organization"},"image":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629#primaryimage"},"thumbnailUrl":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/09\/Ethereum.jpeg","keywords":["Crypto","ETH","Ethereum","Market","Trading"],"articleSection":["Breaking Crypto News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629#respond"]}],"copyrightYear":"2021","copyrightHolder":{"@id":"https:\/\/insidebitcoins.com\/#organization"}},{"@type":"WebPage","@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629","url":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629","name":"Ethereum Sees 75% ETH Skyrocket As Grayscale\u2019s ETHE Drops By 50%","isPartOf":{"@id":"https:\/\/insidebitcoins.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629#primaryimage"},"image":{"@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629#primaryimage"},"thumbnailUrl":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/09\/Ethereum.jpeg","datePublished":"2021-01-06T12:39:12+00:00","dateModified":"2021-01-06T12:40:57+00:00","description":"Frank suggests that many investors of the Ethereum Trust had opted to borrow Ethereum at an annual interest rate of approximately 8%.","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629#primaryimage","url":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/09\/Ethereum.jpeg","contentUrl":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/09\/Ethereum.jpeg","width":2560,"height":1440,"caption":"Crypto Exchange Volumes Rise, Investors Flock Back to the Market"},{"@type":"WebSite","@id":"https:\/\/insidebitcoins.com\/#website","url":"https:\/\/insidebitcoins.com\/","name":"InsideBitcoins.com","description":"Search &amp; Compare Brokers within Crypto, Forex &amp; Stocks","publisher":{"@id":"https:\/\/insidebitcoins.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/insidebitcoins.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/insidebitcoins.com\/#organization","name":"InsideBitcoins","url":"https:\/\/insidebitcoins.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/insidebitcoins.com\/#\/schema\/logo\/image\/","url":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/07\/insidebitcoins.svg","contentUrl":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/07\/insidebitcoins.svg","width":195,"height":32,"caption":"InsideBitcoins"},"image":{"@id":"https:\/\/insidebitcoins.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/insidebitcoins.com\/#\/schema\/person\/542f9bb7fcd1a45cdfd54e377a73fb2d","name":"Ali Raza","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/insidebitcoins.com\/#\/schema\/person\/image\/","url":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2024\/04\/avatar_user_1717_1714353205-96x96.jpeg","contentUrl":"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2024\/04\/avatar_user_1717_1714353205-96x96.jpeg","caption":"Ali Raza"},"description":"Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali\u2019s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Business2Community, BeinCrypto, and more.","sameAs":["https:\/\/www.linkedin.com\/in\/alirazak\/","https:\/\/x.com\/ali_r1272"],"knowsAbout":["Cryptocurrency","Fintech","Finance"],"jobTitle":"Editor","url":"https:\/\/insidebitcoins.com\/author\/aliraza"}]}},"_links":{"self":[{"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629"}],"collection":[{"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/users\/1717"}],"replies":[{"embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/comments?post=280629"}],"version-history":[{"count":0,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/280629\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/media\/273154"}],"wp:attachment":[{"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/media?parent=280629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/categories?post=280629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/tags?post=280629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}