Gold bug peter Schiff has bashed Grayscale Investments over the price performance of its Ethereum investment vehicle, the Ethereum Trust (ETHE), which has lost nearly 80% of its value since its June high.
In a tweet, Schiff claimed that the company’s advertising campaign on the history of money that supported its Bitcoin Trust (GBTC) and Ethereum trust was meant to pump the price of the latter. To Schiff, the campaign did not work as ETHE’s price has been plummeting.
TradingView data shows that in early June, each ETHE share was trading close to the $240 mark, but has been enduring a significant decline since then. At press time, each ETHE share is trading at $49.25, a near 80% drop.
It’s worth noting that each Ethereum Trust share does not contain one ether, but instead contains 0.09339004 ETH, at press time equivalent to $32.2. This means that the trust had been trading at a hefty premium that is seemingly dropping to get closer to its net asset value.
The trust’s price drop coincided with its shares becoming available on secondary over-the-counter (OTC) markets after the expiration of a year-long lockup period. As CryptoGlobe reported, last month Grayscale Ethereum Trust filed a Registration Statement on Form 10 with the U.S. Securities and Exchange Commission (SEC) for its Ethereum Trust (ETHE) to obtain reporting status.
To Schiff, however, the decline is “likely a leading indicator for the more popular Bitcoin Trust [GBTC] that was featured in the same campaign.2 It’s worth point out Schiff is a well-known gold bug who has argued the precious metal is harder to confiscate than the flagship cryptocurrency
Featured image via Pixabay.
