Geometry Dash APK Hill Climb Racing APK
38 F
New York
Sunday, November 28, 2021

Grayscale Ethereum Trust (ETH) (OTCMKTS:ETHE) Attempts To Rebound On Bullish Note

Must read

Medmen Enterprises Inc (OTCMKTS:MMNFF) Pulls Back From Highs as Buzz Cools Off

Among the sectors which have bounced back in 2021, the cannabis sector is one of considerable interest since it had been in...

VirtualArmour International Inc (OTCMKTS:VTLR) Jumps Another 250% This Week

Not every move in the stock market can always be explained and hence, investors are often rightly confused when a stock records...

Ozop Energy Solutions Inc (OZSC) is Riding a Green Wave of Momentum

Investors who are looking for fresh opportunities in rising stocks may have a lot to choose from at this point but it...

Drone Delivery Canada Corp (OTCMKTS:TAKOF) is Soaring after Roadmap Update

The drone industry has grown at a remarkable rate over the past five years or so and hence, it is no surprise...

While the remarkable rally in Bitcoin has led to breathless speculation about its long term price, the recent rally in Grayscale Ethereum Trust (ETH) (OTCMKTS:ETHE), the world’s second-biggest cryptocurrency, has gone a bit under the radar.

The rally in Ethereum has also come as a boon for Grayscale Ethereum Trust (ETHE), which saw its stock soar by as much as 17% on Tuesday this week.

What to Watch

The underlying asset in that fund is made up of Ethereum tokens and hence, the rally in Grayscale Ethereum Trust (ETH) (OTCMKTS:ETHE) is understandable.

In addition to that, it is also necessary to point out that an investment in the trust allows investors the easiest way to get some exposure to Ethereum. That is also a significant factor to be considered.

On Tuesday, the Ethereum token rallied strongly and eventually hit $1400 per token, which is a level that was last season back in 2018. The token is now at a stage from which it needs to rally by around 1% to hit its all-time highs. In such a situation, it is not entirely surprising that the ETHE stock is soaring.

At the end of the day, the fund is made up of Ethereum tokens. That being said, there are some other things that investors need to keep in mind.

When the price of each share is pegged to that of Ethereum tokens, then each ETHE stock is worth $12.15 worth of Ether per share. Considering the fact that the token soared in price on Tuesday, the total holdings in the fund have also experienced a considerable rise in value. However, the stock is trading at $17 a share, which clearly shows that it is overvalued.

In other words, it is better to invest in Ethereum directly than to buy a share in ETHE. If this continues then the stock is going to stay overvalued but at the same time, the convenience of staying invested in Ethereum through owning a stock cannot be discounted.

Disclaimer: We hold no position in ETHE stock.

Latest article

88 Energy Ltd (OTCMKTS:EEENF) Stock Surges 40% But Can’t Hold Gains

The oil and gas company 88 Energy Ltd (OTCMKTS:EEENF) seems to have come back on to the radars of investors over the...

Net Savings Link Inc (OTCMKTS:NSAV) Stock is Getting Pummeled Again

Nowadays there are plenty of options for investors when it comes to making investments in the cryptocurrency and...

Net Savings Link Inc (OTCMKTS:NSAV) Goes Parabolic Ahead of Important Event

As far as cryptocurrency and blockchain companies are concerned, there are many options nowadays for investors to explore.

Dark Pulse Inc (OTCMKTS:DPLS) Stock Moves in a Range After The Big Rally

The laser sensing system company Dark Pulse Inc (OTCMKTS:DPLS) has emerged as one of the major gainers over the course of the...

Halberd Corporation (OTCMKTS:HALB) Stock Doubles After ‘Proof of Concept’ News

Investors are always on the lookout for stocks which managed to record handsome gains over a short of period of time and...
Şehirler arası nakliyat ve Şehirler arası taşımacılık konusunda en uygun fiyatlar ve en kaliteli hizmet.
ofis taşıma firmaları ve ofis taşıma konusunda en uygun fiyatlar ve en kaliteli hizmet. Affordable best sms verification service