The Grayscale Ethereum Trust (ETHE) discount has narrowed to its lowest level in more than two months as investors anticipate spot ether ETF approvals in the U.S. 

The ETHE discount was roughly 10% as of the time of writing, down sharply from 20% the day prior. The narrowing comes as investors expect regulators to approve spot ether ETF approvals in the U.S., where the Securities Exchange Commission requested firms looking to launch such funds to update and refile documents that needed for approval. 

The Grayscale Ethereum Trust is an investment vehicle that offers direct exposure to ether's price movements, according to Grayscale's website. The fund has more than $10 billion worth of ether in assets under management as of this writing.

At a technical level, the ETHE discount …