Cryptocurrencies
Crypto Fund’s Price Diverges From Holdings in Latest Mispricing
- Grayscale Ethereum Trust fell 22% despite rally in holdings
- Episode shows recent issues in funds tracking cryptocurrencies
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A flood of new shares in the Grayscale Ethereum Trust is sending its price in the opposite direction of the cryptocurrency that it holds.
The $3.5 billion fund, ticker ETHE, fell as much as 22% on Monday, despite Ether rallying almost 10%. The divergence was caused by a surge in the number of shares available to trade, with 116 million unleashed at the end of a lock-up period to join the 47 million that were already outstanding, according to Bloomberg Intelligence.