Grayscale's ETHE shares tumble 50% as Ether skyrockets

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A long-term arbitrage play from institutional investors may explain why shares in Grayscale’s Ethereum Trust have tanked by 50% in two weeks while Ether rallied 75%.

Shares in fund manager Grayscale Investments’ Ethereum Trust plummeted by 50% this past fortnight, despite Ethereum rallying by 75% over the same period.

ETHE shares represent 0.09620794 of an Ether each and are currently trading for $13.80 — roughly a 21% premium over the spot price of ETH.

Grayscale’s ETHE shares have been on a roller coaster ride, surging around 500% from $4.20 at the start of October, before topping out at $25 on Dec. 22. The shares have since plummeted by 50%, posting a local low of $12 on Jan. 5.

Source and continuation of the article: https://cointelegraph.com/news/grayscale-s-ethe-shares-tumble-50-as-ether-skyrockets