Ether ETV Class A T.QETH.UN

RE:Jan 25th - Press release; At-the-market Fund offering

[rwfresh]

Hey @workrestplay,

You are in fact correct that program to issue more units is open. But as the PR outlines this program is meant to increase total ETH per unit which increases NAVPU.

How does it work? The program issues units and immediately sells those units only when QETH is trading above NAVPU. The money is then immediately used to purchase Eth through Gemini. For each newly issued QETH sold above NAVPU that money is used to purchase MORE ETH than what the unit sold represented. This program was explicitly created to take advantage of the premium buyers were willing to pay and to also manage the bid price closer to the actual underlying value. Very similar to how an ETF works. 

So does it work? 100%. Look at the NAVPU. Over time the NAVPU has increased more than the value of ETH itself. The fund is growing and becoming more valuable because they are always buying more ETH.

But you are correct and I was wrong, this program to issue outstanding units exists but only positively effects NAVPU. Whenever this program is active your QETH is increasing in intrinsic value. They are selling new QETH at a premium and converting that premium to ETH which increase NAVPU.

Now take a look at the other PR I posted. They have another program that counters that program. When QETH bid is trading at a discount to NAVPU 3iq is actively BUYING QETH from the open market and then burning those QETH. So again, this pushes the bid price closer to intrinsic value/NAVPU and makes all QETH more valueable. 

This really isn't much different than how an ETF works. The thing about the fund is they aren't selling the underlying asset. They are always accumulating ETH and managing NAVPU. Growing the fund's assets. There is no benefit to 3iq to sell Ethereum or lower NAVPU. These programs are meant to increase NAVPU and manage bid/sell as close to NAVPU as possible.