- SEC approves spot Ethereum ETF; trading starts July 23. Grayscale’s $1B ETH transfer boosts Ethereum Trust (ETHE) and mini-ETF.
- Grayscale’s $1B ETH transfer likely funds the mini-ETF launch. New ETF has a low 0.15% management fee and fee waiver of up to $2B inflows.
- Grayscale’s document delay is unlikely to impact the launch. NYSE and Cboe confirm July 23 trading for ETH ETFs.
The U.S. Securities and Exchange Commission (SEC) has approved the spot Ethereum ETF. Trading will commence on Tuesday morning, July 23. Grayscale is making substantial ETH transfers worth $1 billion. This transfer is seen as a move to launch its Ethereum Trust (ETHE) and the Grayscale Ethereum mini-ETF (ETH).
A transfer of 292,262 ETH, worth over $1 billion, was reported by Whale Alert from an unidentified wallet to Coinbase Institutional. Grayscale is moving the money, as revealed by Eric Balchunas, a strategist for Bloomberg ETFs.
They are transferring from its Ethereum Trust (ETHE) to the Grayscale Ethereum mini-ETF (ETH). This transfer is likely the seed capital for the mini-Trust. This strategic move aligns with Grayscale’s market positioning.
Grayscale’s Strategic Move and Pricing Strategy
The Grayscale Ethereum mini Trust will offer a lower management fee of just 15 basis points. Moreover, Grayscale announced a complete fee waiver until $2 billion in net inflows. This aggressive pricing strategy is expected to attract market interest. It positions Grayscale competitively among other market issuers.
Interestingly, Bloomberg ETF strategist James Seyffart highlighted a delay in Grayscale’s document submission. While all other issuers submitted documents on Monday, Grayscale has not yet done so. Seyffart remains optimistic, stating, “I’m still expecting them before trading tomorrow.” This delay might not significantly impact the launch.
Market Reactions and Ethereum’s Price Trends
The New York Stock Exchange (NYSE) revealed its clearance to list the Bitwise and Grayscale ETH exchange-traded funds. Analysts had previously forecasted a Tuesday trading date. Additionally, Cboe’s recent filings indicated a July 23 launch.
Bloomberg ETF analyst James Seyffart, along with Eric Balchunas, expects the funds to commence trading on Tuesday. Balchunas shared Seyffart’s post, indicating a busy day for SEC filings. Nate Geraci, founder of The ETF Institute, echoed this sentiment. Geraci wrote, “Welcome to spot eth ETF launch week.” This highlights the anticipation and excitement surrounding the launch.
In the meantime, Ethereum’s price fell 1.4% during the previous day. Still, it increased 2.2% in the last week. This week, Bitcoin has done better than Ethereum. Ethereum is down 29% from its top price in November 2021, while Bitcoin is 8.9% below its all-time high. In the long run, analysts think these spot ether funds will increase ether’s price and demand.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
