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No brainer considering to buy ETH on the stock market via grayscale you're paying a 104% premium. The demand (e.g. within registered & margin accounts) is there

No brainer considering to buy ETH on the stock market via grayscale you're paying a 104% premium. The demand (e.g. within registered & margin accounts) is there. https://ycharts.com/companies/ETHE/discount_or_premium_to_nav https://ycharts.com/companies/ETHE/discount_or_premium_to_na... Aside: Seems covid is accelerating understanding & adoption of crypto. I remember when I couldn't perform a wire transfer for a full week back in March '20 - at one of the most reputable banks globally. I lost money due to this. Never again.

anm89 6y ago
When you say stock market, do you actually mean stock market or a crypto exchange? I'm not under the impression that there is any way to buy ETH via any stock market.
- skyyler 6y ago
  They linked an eth trust that can be traded on OTCQX. Did you even read their comment?????
- wlesieutre 6y ago
  Google found this: https://grayscale.co/ethereum-trust/ https://grayscale.co/ethereum-trust/ Offers a bit more explanation than the parent link. > Grayscale Ethereum Trust is solely and passively invested in Ethereum, enabling investors to gain exposure to ETH in the form of a security while avoiding the challenges of buying, storing, and safekeeping ETH directly.
- elevenoh 6y ago
  stock-market traded securities that hold crypto underlyings.
joncrane 6y ago
> I couldn't perform a wire transfer for a full week back in March '20 - at one of the most reputable banks globally Can you explain this in more detail?
- alecco 6y ago
  If you cross borders your transaction might get stuck. Also some institutions will refuse to send or receive from less popular counterparties. Combine that with all the anti-money laundering regulations and KYC laws everywhere making a bureaucratic mess. In Swift it's common to specify a routing/intermediary entity which usually is a bigger bank or a branch in NYC/London to work around this mess. And surprise, you get terrible FX rates and magic fees on both ends. One transaction this year across my own accounts took 4 business days and cost ~$40, within the same continent across two top 10 banks. Now I do everything with TransferWise and it's much better. Hopefully soon I'll just use crypto. It's my own hard earned money, damnit. Fingers crossed.
siliconmountain 6y ago
I don't understand NAV premiums when it comes to ETH. What does this mean?
- josu 6y ago
  The fund has 100 ETH. Let's assume the price of ETH is $1. The NAV of the fund is $100. A premium of 100% means that the fund is trading at $200. This means that there is an arbitrage opportunity: https://medium.com/amber-group/grayscale-gbtc-and-ethe-arbitrage-risks-f14f745641ce https://medium.com/amber-group/grayscale-gbtc-and-ethe-arbit...
  - z77dj3kl 6y ago
    That's not an arbitrage due to the lock up period, which exposes you to considerable risk.
    - josu 6y ago
      You borrow the assets that you are depositing in the fund, so there is no price exposure during the lockup period. Not all arbs are executed instantly. But you know all this...

anm89 6y ago

When you say stock market, do you actually mean stock market or a crypto exchange? I'm not under the impression that there is any way to buy ETH via any stock market.

skyyler 6y ago
They linked an eth trust that can be traded on OTCQX. Did you even read their comment?????
wlesieutre 6y ago
Google found this: https://grayscale.co/ethereum-trust/ https://grayscale.co/ethereum-trust/ Offers a bit more explanation than the parent link. > Grayscale Ethereum Trust is solely and passively invested in Ethereum, enabling investors to gain exposure to ETH in the form of a security while avoiding the challenges of buying, storing, and safekeeping ETH directly.
elevenoh 6y ago
stock-market traded securities that hold crypto underlyings.

joncrane 6y ago

> I couldn't perform a wire transfer for a full week back in March '20 - at one of the most reputable banks globally Can you explain this in more detail?

alecco 6y ago
If you cross borders your transaction might get stuck. Also some institutions will refuse to send or receive from less popular counterparties. Combine that with all the anti-money laundering regulations and KYC laws everywhere making a bureaucratic mess. In Swift it's common to specify a routing/intermediary entity which usually is a bigger bank or a branch in NYC/London to work around this mess. And surprise, you get terrible FX rates and magic fees on both ends. One transaction this year across my own accounts took 4 business days and cost ~$40, within the same continent across two top 10 banks. Now I do everything with TransferWise and it's much better. Hopefully soon I'll just use crypto. It's my own hard earned money, damnit. Fingers crossed.

siliconmountain 6y ago

I don't understand NAV premiums when it comes to ETH. What does this mean?

josu 6y ago
The fund has 100 ETH. Let's assume the price of ETH is $1. The NAV of the fund is $100. A premium of 100% means that the fund is trading at $200. This means that there is an arbitrage opportunity: https://medium.com/amber-group/grayscale-gbtc-and-ethe-arbitrage-risks-f14f745641ce https://medium.com/amber-group/grayscale-gbtc-and-ethe-arbit...
- z77dj3kl 6y ago
  That's not an arbitrage due to the lock up period, which exposes you to considerable risk.
  - josu 6y ago
    You borrow the assets that you are depositing in the fund, so there is no price exposure during the lockup period. Not all arbs are executed instantly. But you know all this...