Grayscale’s Ethereum Trust continues to trade at a significant discount to net asset value (NAV), currently sitting at 23.78%, as the SEC's decision on a spot Ethereum (CRYPTO:ETH) exchange-traded fund (ETF) nears.

Despite Grayscale retracting its plan to convert its Ethereum Trust into a publicly traded ETF, the discount on NAV remains substantial, raising concerns among market watchers.

The persistent discount on Grayscale's Ethereum Trust mirrors the challenges faced by its Bitcoin Trust (GBTC) before the approval of BTC ETFs, signaling potential hurdles for an ETH-based ETF.

Betting data from Polymarket indicates low probabilities of the SEC approving a spot ETH ETF, further adding to the uncertainty surrounding Grayscale's Ethereum Trust and the broader crypto market.

As investors await the SEC's decision and closely monitor the situation, the discount on Grayscale's Ethereum Trust highlights the cautious sentiment prevailing in the market.