Grayscale struggles with dwindling investor interest in Ethereum, Bitcoin Trusts – Bitcoin (BTC/USD), Ethereum (ETH/USD)

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The Grayscale Ethereum Trust (ETHE) has reached a record discount of 59.39% against the price of Ethereum ETH/USD, according to data from YCharts.

While the fund previously traded at a premium to ETH, it has always been at a discount since November 2021.

ETHE, which is managed by Grayscale Capital, allows traditional investors to gain exposure to Ethereum without investing directly in the cryptocurrency.

Also Read:Grayscale May Return 20% of Investors’ Capital if SEC Rejects Spot Bitcoin ETF: Report

The fund has some $3.6 billion in assets under management. It lost around 68.37% of its value in 2021 due to the drop in ETH and other crypto assets.

Grayscale’s Bitcoin Trust GBTC faces similar issues. The shares are currently trading at a 45.17% discount to the price of Bitcoin BTC/USD, according to YCharts.

Although investors can sell their shares in these funds at any time, they do not have access to the underlying cryptocurrency.

Grayscale has applied for permission to convert its cryptocurrency funds into exchange-traded funds, which would allow them to be traded on public exchanges and potentially improve their liquidity.

Dutch cryptocurrency exchange Bitvavo claimed that Grayscale and its parent company Digital Currency Group (DCG) “are experiencing liquidity issues”.

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