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Peter Schiff Has Ominous Warning for Barry Silbert’s Grayscale

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Wed, 09/09/2020 - 06:02
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Alex Dovbnya
Grayscale’s ad campaign has fallen on deaf ears, with the shares of its Ethereum Trust careening 78 percent
Peter Schiff Has Ominous Warning for Barry Silbert’s Grayscale
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American commentator Peter Schiff took a swipe at cryptocurrency asset management firm Grayscale Investments for failing to push the shares of its Ethereum Trust (ETHE) with its “massive TV advertising blitz.”    

Schiff believes that its seemingly poor performance spells trouble for Bitcoin Trust (GBTC), the crown jewel of Grayscale with close to $4.4 bln worth of assets under management:

“This is likely a leading indicator for the more popular Bitcoin Trust that was featured in the same campaign.”    

ETHE premium nose-dives

As Schiff aptly pointed out, Grayscale Ethereum Trust indeed took quite a beating over the last few months, collapsing almost 78 percent from its June high when investors were willing to pay more than 1,000 percent premium to get exposure to ETH.   

The rapid collapse started when many of the trust’s shares became available on secondary OTC markets after the expiration of a year-long lockup period. On Tuesday, ETHE closed at $49.2, the lowest level since the March crypto crash. 

Grayscale
image by tradingview.com

While the trust’s shares are still trading at a decent 36 premium to NAV, Schiff insists that it’s a sign of “waning demand.”       

Yet, Grayscale Ethereum Trust the world’s largest investment vehicle for ETH that filed to obtain the status of an SEC reporting company last month.    

Related
Grayscale Now Holds $5,100,000,000 Worth of Crypto

It was just a “publicity stunt”

Before once again bashing the company of his arch-enemy Barry Silbert, Schiff finally admitted the true purpose of his anti-Bitcoin tweets — fishing for attention on Twitter.

This came after the gold bug got badly defeated by his own son in the Sept. 7 poll that he now dismisses as a “publicity stunt” that was merely meant to attract more engagement. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.