Investing in Cryptocurrency Is Risky. This Fund Is Just a Bad Idea By Lewis Braham Barron's Aug. 23, 2019 6:52 pm ET ... Etherium is not easy to explain, but let’s call it a programmable blockchain and a cryptocurrency. The Grayscale Ethereum Trust is also hard to explain—it’s not quite an exchange-traded, closed-end, or open-end mutual fund. It’s complicated enough that to purchase new shares, you need to be an accredited investor (with an income of more than $200,000 or a net worth or more than $1 million). New shares are created for accredited investors at essentially Ethereum’s value. But when those accredited investors want to sell, they must do so on the over-the-counter market, without the oversight of an exchange. Who’s buying? Retail investors. The problem? Those OTC shares can trade at a premium or discount to the trust’s Ethereum-based NAV. So far, Grayscale Ethereum shares have traded at huge premiums, an absurd 1,825% on June 21, meaning that people were paying 18 times the value of the underlying cryptocurrency. As the price collapsed, the premium shrunk to a still-ridiculous 119%, as of Aug. 21, so the shares are now double the value of the underlying assets. ... **************************************************************** Why can't an accredited investor make money by buying shares of Grayscale Ethereum Trust at NAV and selling on the open market? The Grayscale site says "Qualified accredited investors* can choose to invest directly in Grayscale’s Investment Products at the daily “Holdings per Share” values determined at 4 p.m. New York time based on the corresponding TradeBlock indices. Shares of Grayscale’s Investment Products are subject to significant resale and transfer restrictions." What are the resale and transfer restrictions, and do they make the "arbitrage" not worthwhile?