Ethereum Classic Trust (ETCG) trading at ~50%+ discount to NAV

The Grayscale Ethereum Classic Trust (ETCG) stock is trading at a ~50% discount to net asset value (NAV). 

We think this could represent an opportunity for clients depending how the markets move over the weekend and want to put this on folks’ radar for next week. 

Currently, the stock ETCG is trading at ~$56 and meanwhile its underlying holdings, the cryptocurrency Ethereum Classic (ETC), are trading at $120 on Coinbase and $140 on Robinhood. 

The chart below shows the historical price, NAV, and premium/discount to NAV for ETCG. Note, Bloomberg does not update their pricing inter-day in real time for this product and the current discount is larger than reflected here: 

Source: Bloomberg 

The website Tradeblock (https://tradeblock.com/markets/indices/ecx) reports the data intra-day in near real time and shows us large difference in pricing that currently exists in the market. 

Source: Tradeblock 

The price of the cryptocurrency Ethereum Classic (ETC) has run up nearly 4x in the past week alongside many similar crypto assets. And for investors that are couscous of the sustainability of this pricing, they could choose to hedge their position by shorting futures and simply betting on the discount converging regardless of the direction of ETC price....