Apparently one share of ETHE represents roughly 0.1 ETH meaning 0.1 x $279 = $28 value in a share.
The share price is $116, so that is a 314% premium to NAV
This isn't a way to invest in Ethereum. You're basically just trading on the popularity of the shares and gambling on on the premium to NAV. Even if ETH stayed totally flat going forward, you could lose 76% if the share price drops down to fair value.
If ETH fell 50% and the premium disappeared, that would be 88% drop in your shares.
I think tech stocks actually provide a valuable lesson in why it's so hard to invest in tremendously volatile securities, even if they actually end up performing the best.You have to separate the wheat from the chaff like anything. It's unclear what will be the FAANG of cryptos but how would you like to have bought a few FAANG shares 20 years ago?
But consider that, since stocks trend upwards over time, they will (by mathematical necessity) spend a significant amount of their time at, or near, all time highs. Look at the S&P 500 chart for example: http://schrts.co/fZUTrDGKNot really excited to pile all contributions into more stocks when most of my holdings are hitting all time highs. Bonds/emergency fund/pension etc bases already covered.
|1991-09-18||yahoo chart||all time high!|
|1996-05-27||yahoo chart||all time high!|
|1997-11-21||http://schrts.co/ADijcpif||all time high!|
|2001-06-26||http://schrts.co/VVnIQxqs||in a correction|
|2002-08-29||http://schrts.co/EhvUvrPG||in severe correction|
|2004-11-18||http://schrts.co/mscUQnfS||a moderate level|
|2007-12-13||http://schrts.co/ebfTZzqc||all time high!|
|2014-02-07||http://schrts.co/ZvxxKcxa||all time high!|
|2015-04-07||http://schrts.co/UcXaPAbI||all time high!|
|2017-08-07||http://schrts.co/XgGRqJsS||all time high!|
While the analogy is reasonable, what's to say that ETHE or BTC or whatever other random coin in 1999's Google, and not 1999's pets.com?I feel like the .com bust is a better analogy. When people started to see the internet's potential in the 90s the stocks blew up and those who didn't understand piled on with FOMO. After the bust I remember the layman saying they didn't understand how Google makes any money into the 2010s and yet now we have FAANG stocks. The average person didn't really understand the value of the internet for decades.