The Grayscale Ethereum Trust (ETH) (OTCMKTS:ETHE) experienced a notable downturn on Wednesday, with its share price dropping by 7.7%. The stock reached a low of $23.61 before closing at $23.67. Trading volume surged to approximately 10,496,872 shares, reflecting a remarkable 92% increase compared to the average daily volume of 5,455,451 shares.
Prior to this decline, the stock had closed at $25.64. Over the past 50 days, the moving average price stood at $32.29, while the 200-day moving average was recorded at $28.67. This recent drop has raised questions among investors regarding the potential for further losses and whether it is time to sell.
Institutional investors have shown varying interest in the Grayscale Ethereum Trust. In the first quarter, CWM LLC significantly increased its stake in the trust by 635.7%, now holding 15,927 shares valued at $242,000 after adding 13,762 shares during this period. Similarly, Focus Partners Wealth raised its holdings by 11.0%, acquiring 117,089 shares worth $1,782,000 after purchasing an additional 11,612 shares.
Other institutional movements include Connective Capital Management LLC, which grew its position in the Grayscale Ethereum Trust by 37.8%, now owning 28,466 shares valued at $433,000 after acquiring an extra 7,807 shares. Avantax Advisory Services Inc. also expanded its investment, increasing its stake by 144.0% to 72,900 shares valued at $1,110,000 following the purchase of 43,018 additional shares.
Finally, HB Wealth Management LLC raised its position by 103.7%, now holding 19,587 shares worth $298,000 after acquiring an additional 9,971 shares in the last quarter. As institutional interest fluctuates, investors are left to consider the implications of these developments on their own holdings in the trust.
