The discount rate of Grayscale Ethereum Trust to net asset value has fallen to its lowest level since December 2021

Due to the optimistic outlook of the U.S. Securities and Exchange Commission on the approval prospects for spot Ethereum exchange-traded funds, the net asset value (NAV) discount rate of Ethereum Trust Fund (ETHE) has dropped to its lowest level in more than two years.

The NAV discount indicates how much lower the market price per share is compared to its represented value in Ethereum. According to data from YCharts, as of yesterday's close, this discount rate had fallen to -6.7%, which is the lowest since December 2021.

A narrowing discount could be seen as an indicator of a possible approval for a spot Ethereum ETF, with investors seemingly buying discounted shares ahead of potential ETF conversions, just like what happened with Grayscale Bitcoin Trust (GBTC) before it converted into an ETF in January. ETHE currently manages $10.9 billion in assets.