The Grayscale Ethereum Trust (ETHE) has experienced significant gains recently, following the filing of applications by ARK Invest and VanEck to launch a spot Ethereum exchange-traded fund (ETF). Despite a drop in the price of ETH, the discount to net asset value (NAV) of ETHE has narrowed to 26%, according to blockchain intelligence firm IntoTheBlock.
ARK Invest took a step towards launching the first spot Ether ETF in the United States on September 6. In a filing with the SEC, the asset management firm outlined plans for the ARK21Shares Ethereum ETF, which will track the performance of ETH. Coinbase will act as the custodian of the fund’s ETH holdings, while 21Shares is the trust’s sponsor. ARK Invest will serve as the sub-adviser and handle share marketing.
This news, along with VanEck’s filing, caused a stir in the crypto market, prompting a brief rise in the prices of bitcoin (BTC) and ETH, before they returned to pre-announcement levels. However, ETHE continued to make gains. IntoTheBlock reports that ETHE has seen a more than 140% increase in 2023, resulting in a narrowing discount to its underlying ETH. This trend suggests that the market is speculating on the possibility of Grayscale converting ETHE into an ETF in response to the growing interest in the industry.
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