BitDigest June 25 · Issue #687
Jun 25, 2020
Author
- Crypto prices slide as total market cap looses 3.5%
- The Venezuelan Government is beginning to accept bitcoin, not just the petro, as a form of payment
- Shares in Grayscale’s Ethereum Investment Trust sell-off, down 47% over the past week
Weekly Stock Review
Highlights from the North American listed crypto, blockchain and mining stocks:
- After declining in price for 5 consecutive weeks, Canaan (NASDAQ: CAN) has finally stabilized as average volume increased by 24%.
- The Grayscale Ethereum Trust (ETHE) fell 47% this week pulling the premium to NAV from a three-week average of over 800% to a still substantial 356%. Ethereum has seen a recent jump in gas fees, and people are commenting that the protocol’s growth is being driven by market interest in stablecoins not the blockchain’s native ether (ETH), but it is most likely that the ETHE sell-off was caused by a large scale investor looking to collect the premium at the end of their one-year lock-up period. (Bloomberg reported the same theory). Through the end of last week, 30-day average volume for ETHE was 33k; activity this week has been 282k, 177k, and 387k. Only once this year (February 26th) did volume reach these current levels (182k).
- The Grayscale Ethereum Classic Trust (ETCG) also fell 22% on the week, falling 14% yesterday. Although the underlying currency’s blockchain has experienced a decline in on-chain activity, I believe this sudden sell-off is related to public market investors selling ETCG as a proxy for ETHE.
