A few days ago, we were diving into a retrospective, with bitcoin made very attractive, at $ 30. This time, we're going to do the opposite and talk about this ether that some people buy today for almost 8 times more expensive than its market price ...
This is not ether
The asset we are going to talk about is not directly ether, but a financial gateway to ether.
Here's how it works: you will own a share when you buy your underlying, and that company will promise you X or Y bitcoins per stake. In this case, 1 participation amounts to 0.094 Ethers. To buy the right to expose yourself to variations in the price of an ether, you will have to buy between 10 and 11 shares, or at the daily price, between $ 1900 and $ 2090 for 1 ether!
The interest of this type of asset is mainly from the point of view of traditional finance. The fund we are talking about is a listed fund: Grayscale is an investment fund regulated since May 2019.
The demand for this kind of asset is therefore special. The investor population is probably very different from the population buying on Bitfinex or FTX. Rather, it is an institutional population.
ETHE on the left; ETHUSD on the right; 3D
On the left, it is ETHE, the Grayscale collection. Between the bottom of the coronavirus and the highest, the performance is 1100%. The previous precedent was also significantly crossed.
Right, it's ETHUSD, ether against the dollar. Between the bottom of the coronavirus and the highest, the performance is 188%! The above precedent is not yet challenged.
Why this “premium” between Ethereum and Grayscale?
The premium is precisely this price difference between the price of a derivative product (in this case ETHE) and the price of the underlying whose evolution it replicates (ether against USD in this case). But how do you explain it?
Truth be told, it's pretty complicated, but here are a few things:
- ETHE is only accessible to accredited investors, who hold $ 1,000,000 in assets, or who have an income of $ 200,000 per month (300,000 for couples);
- A one-year blocking period follows the acquisition of the shares.
This blocking period (#HODL) will end for a good part of the buyers within the next 2 months, which could end the premium (#CRASH).
Binance is a trading platform for altcoins. It has a very high level of performance. Indeed, it allows you to perform a large number of operations per second, is available in several languages, offers very responsive customer support and adapts very quickly to new forks.
Please register through this link: https://www.binance.com/en/register?ref=I574DY23