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Use the calculator to convert real-time prices between all available cryptocurrencies and fiat. For each new expiration month, FTX US Derivatives will list at least five strikes in $1,000 strike intervals. In the second half of the current month, FTX US Derivatives may list additional contracts for the current month and the following month.
The fund’s manager, New York-based Grayscale Investments, takes care of the custody in exchange for an annual management fee of 2%. The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG. The trust closed 5.21% below the price of ETH on Thursday after trading at a premium to the spot price of ether since 2017, according to historical data from Skew.
- A list of the top Ethereum Premium markets across all crypto exchanges based on the highest 24h trading volume, with their current price.
- These fixed-month contracts usually trade at a slight premium to spot markets because sellers are requesting more money to withhold settlement longer.
- For reference, as someone who’s been trading these products since they came out, Ethereum futures used to have a net negative drag of around 7% per year in 2021.
- Nansen pegs the collective value of the more liquid assets at 625 ETH, or about $846,000 worth, but noted that over 89% of the NFTs have low liquidity.
Crypto market cap is the total value of all the coins of a particular cryptocurrency that have been mined or are in circulation. Market capitalization is used to determine the ranking of cryptocurrencies. The higher the market cap of a particular crypto coin, the higher its ranking and share of the market. Crypto market cap is calculated by multiplying the total number of coins in circulation by its current price.
Cryptocurrency Prices by Market Cap
Nansen pegs the collective value of the more liquid assets at 625 ETH, or about $846,000 worth, but noted that over 89% of the NFTs have low liquidity. Many of the assets appear to have been given a very low valuation compared to their original respective purchase prices. There have been no updates, change in stance, or any real analysis indicating an increased likelihood of a Bitcoin ETF approval – let alone an Ethereum ETF approval. So ultimately we’re at the same place where we were months prior when ETHE’s discount to NAV was far greater – but with far worse fundamentals and relative value, as outlined above. Sign up for Market Wrap, our daily newsletter explaining what happened today in crypto markets – and why.
Calculating the backwardation present in Ether Futures is currently 3.2%/year, which is marginally below the yield staking Ethereum generates, but above the risk-free rate currently. This validates this thesis, and suggests backwardation – or real yield backwardation – is likely to continue. While this discount to NAV is present in all the popular grayscale funds, in the case of ETHE it is particularly problematic. In this article, I’ll present my case for going with either spot Ethereum or Ether futures instead of Grayscale Ethereum Trust, and for ETHE declining to at least a discount of -40% to the fund’s NAV. Tanaya is a business journalist in New York covering financial services and the future of money. Ethereum Premium is a blockchain based project that manage payments, inter- and intra-company money transfers without third-parties.
How To Buy Cryptocurrency
Offers indirect exposure to Ethereum — and even better, it currently offers a discount to the intrinsic value of the Ether it owns. Furthermore, the Ethereum network’s adjusted total value locked has held a reasonable 42.8 million ETH despite the price correction. Once again this isn’t to say you should go out and arbitrage this – or that Ethereum futures are superior to ETHE because of this – but rather the relative attractiveness of ETHE has gotten worse relative to the past. This begs the question, do you believe ETHE will be converted to a spot ETF in less than 4 years?
Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Crypto fans are clamoring for easier ways to invest, but this vehicle already offers something most other crypto investments can’t match. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Currently, data shows few signs that bulls are ready to regain control. If this were the case, the Ether futures premium would have turned positive after such a rally.
Grayscale Ethereum Trust
For instance, if the 24h volume for Ethereum is $15 billion, it means that $15 billion worth of Ether had changed hands across all exchanges in the last 24 hours. Before you think that’s free money, however, it’s important to realize that there’s no guarantee the discount won’t get larger than 4%. Because there’s no obligation or ability for Grayscale to cash out shares in exchange for actual cryptocurrency, the share price doesn’t have to match up with the movements in the underlying tokens. The reason why many investors have shied away from cryptocurrenciesis that trading directly in tokens requires extra steps beyond stock investing. Most stock brokerages don’t offer direct investing in cryptocurrencies, and most cryptocurrency exchanges don’t have integrated stock trading. These fixed-month contracts usually trade at a slight premium to spot markets because sellers are requesting more money to withhold settlement longer.
Weekly strikes may be listed up to 20% above the ATM strike level and down to 20% below the ATM strike level, in accordance with BTC price volatility. The benefit, though, is that Grayscale Ethereum Trust gets treated like a stock for most brokerage purposes. A broker that doesn’t allow trading in over-the-counter securities won’t allow trading in Grayscale’s products, but otherwise, the trust is available in regular brokerage accounts. Retail traders usually avoid quarterly futures due to their fixed settlement date and price difference from spot markets. However, the contracts’ biggest advantage is the lack of a fluctuating funding rate, hence the prevalence of arbitrage desks and professional traders. Analyzing Ether’s performance from a longer-term perspective provides a more appealing sentiment, as the cryptocurrency is currently 45% below its $4,870 all-time high.
Interpreting Grayscale Premiums: GBTC, ETHE
Ether’s futures contract annualized premium, or basis, reached 2.5% on Feb. 25, reflecting bearishness despite the 11% rally to $2,700. The worsening conditions depict investors’ doubts regarding the Ethereum network’s shift to a proof-of-stake mechanism. Ether reached a $3,280 local high on Feb. 10, marking a 51.5% recovery from the $2,160 cycle low on Jan. 24. That price was the lowest in six months, and it partially explains why derivatives traders’ main sentiment gauge plummeted to bearish levels. I/we have a beneficial long position in the shares of ETHUSDRR either through stock ownership, options, or other derivatives.
The SEC has refused to even approve an Ethereum-futures ETF, which occurred over a year ago in the case of Bitcoin, and a Bitcoin ETF is still no closer to reality today than it was then. We may see a resolution, and a successful case against the SEC by Grayscale regarding their GBTC fund; however, this wouldn’t greenlight Ethereum into becoming an ETF just as a bitcoin futures ETF didn’t greenlight an Ethereum futures ETF. In truth, the conversion would be unprecedented, and thus there’s no real way to calculate the probability of it occurring in a certain time What is Ethereum Premium frame. This is why my thesis is based on the fund’s relative valuation today compared to the pre-merge periods. To make matters worse Ethereum Futures have, for the last month – and stretching out months into the future, switched from being in contango to backwardation, making the net carry of the futures positive relative to spot. Without sweeping crypto-regulations, and likely a change in the SEC commissioner, it’s unlikely ETHE gets converted to an ETF anytime in the next few years – making ETHE quite unattractive in comparison to futures or spot Ethereum.
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You should also seek advice from a financial advisor before making any investment decisions. With declining relative attractiveness of the fund, no clear catalyst for this discount to NAV closing, and the likelihood of negative catalysts occurring far before any positive catalysts, ETHE is likely to underperform relative to alternatives. Relative valuation doesn’t matter if an investor believes Grayscale Ethereum Trust will convert to become an ETF soon.
So while the relative valuation thesis is all good in principle, it is entirely dependent on the probability of the fund being converted into a spot ETF. But again – this is not to say it’s wise to go out and buy futures and sell covered calls against them , it is to demonstrate the changing dynamics and the relative attractiveness of ETHE. Due to the /ETHUSD_RR product being a futures product rather than an OTC product, it is margin-compatible and offers around 30% in margin relief currently. With the merge, the CME group announced and successfully launched Ethererum futures options on their /ETHUSD_RR product, which has minimal fees for the contract size . This decline in NAV really became an issue after the CME launched Ethereum Micro-futures, and was made worse by the general market decline.
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The company’s other product, the $6 billion Grayscale Ether ETH eum Trust , has also seen its discount widen to 34.22% this week. Cryptoquant.com needs to review the security of your connection before proceeding. For many businesses, it is almost impossible to create a bank to store its own value.
ETHE shares fell to $13.39 Wednesday but rallied to $15.00 in after-hours trading. Gain exposure to bitcoin and ethereum and manage risk through our trusted, regulated platform. For a long time, demand for those released shares was far larger than supply, and so Grayscale Ethereum Trust sold at a premium to the value of the Ether it owned. In fact, premiums of almost 1,000% a year ago and nearly 300% as recently as December offered early accredited investors huge windfalls above and beyond the rise in Ether prices.
You can track over 10,000 crypto prices on CoinGecko across more than 50 currencies. Popular cryptocurrency pairs include BTC to USD, ETH to USD, and SLP to PHP. You can also track metrics such as 24 hour trading volume, market capitalization, price chart, historical performance chart, the circulating supply, and more. Sign up to use CoinGecko’s https://cryptolisting.org/ crypto portfolio to track the performance of your portfolio. You may also check out GeckoTerminal , our comprehensive multichain on-chain charting tool featuring live charts, current trades, market sentiment and more as it happens in real time! CoinGecko also has a mobile app that enables you to track cryptocurrencies on Android and IOS.
For instance, to calculate the market cap of Ethereum, all you need to do is multiply the total number of Ethereum in circulation by the current price of one Ethereum and you will get its market cap. Discounts on the two largest cryptocurrency funds hit all-time lows as the digital assets market suffered one of its most volatile weeks. A list of the top Ethereum Premium markets across all crypto exchanges based on the highest 24h trading volume, with their current price. Grayscale Investments was a pioneering player in the cryptocurrency space, and it quickly jumped into the game with multiple investment trusts geared toward individual and groups of crypto tokens. In the absence of U.S. cryptocurrency exchange-traded funds, Grayscale’s products look very similar, using a combination of private placements and over-the-counter trading of exempt shares to offer Ether exposure to investors.
This situation is known technically as “contango” and is not exclusive to crypto markets. You see with Grayscale Bitcoin Trust your alternatives are ProShares Bitcoin Strategy ETF , futures, or spot BTC – none of which have real yield potential, at least without taking on extra market-side risk. This makes the fund somewhat attractive, as the discount to NAV just has to close before the fund’s fees eat up that discount. At today’s prices, GBTC has a discount to NAV that would take 15 years for the fund’s fees to eat up. You may notice that cryptocurrencies listed on different exchanges have different prices. Total cryptocurrency trading volume in the last day is at $215 Billion.
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