The negative premium of Grayscale's Ethereum Trust (ETHE) has narrowed to 8%, reflecting increased market optimism, possibly tied to anticipated spot ETH ETF developments. This reduction suggests growing demand for ETHE shares, historically trading at a discount due to their non-redeemable nature. As trust shares unlock, investors may sell redeemed ETH on the spot market, potentially exerting downward pressure on Ether prices. A simulation of this impact depends on unlock volume and market absorption capacity. If significant (e.g., 2.9M ETH, ~$10B), outflows could mirror Grayscale’s Bitcoin Trust post-ETF conversion, causing short-term volatility. However, strong buying interest and limited spot supply might mitigate the effect. Current data (April 3, 2025) indicates a stabilizing trend, but precise outcomes remain speculative without real-time unlock specifics.

Market optimism drives ETHE premium reduction as spot ETH ETF anticipation grows. Unlocking trust shares may impact Ether prices, depending on volume and market capacity. Potential short-term volatility post-ETF conversion, but strong demand and limited supply could offset effects. Stabilizing trend observed, but outcomes remain speculative without real-time data.

Yeah, I’ve been watching that ETHE premium narrow lately, definitely a sign of rising optimism around a spot ETH ETF. If Grayscale gets that conversion, we’ll probably see some sell pressure from unlocked shares, but long term I’m still bullish.

If demand holds up, $ETH might surprise people.