Ethereum (ETH) Fund Discount Stabilizes as Grayscale Nears ETF Deadline: A Crypto Market Update

• As the May deadline for spot Ethereum exchange-traded fund (ETF) applications in the U.S. approaches, shares of Grayscale’s Ethereum Trust (ETHE) appear to be stabilizing.
• Despite doubts from analysts about the approval of spot Ethereum ETFs in the U.S., the Securities and Exchange Commission (SEC) will have to respond to its earliest applications by May 25.
• Approval odds for spot Ethereum ETFs have dropped from 76% in January to 6% on Monday, according to prediction platform Polymarket.

As the deadline for Ethereum ETF applications in the U.S. nears, shares of Grayscale’s Ethereum Trust show signs of stability. Despite the declining odds for approval, the SEC is set to respond to the earliest applications by May 25.

Grayscale’s Ethereum Trust Shares Stabilize

As of Friday, shares in Grayscale’s ETHE traded at a 22% discount relative to the funds’ crypto holdings, according to data from YCharts. Since March 22, that discount has ranged between 21% and 26%, widening from as little as 8% earlier that month. Mark Connors, head of research at digital asset investment firm 3iQ, suggests that ETHE’s steadying discount reflects “not only pricing in the downside of regulation, but [also] the upside of industry action.”