Greyscale’s spot Ether ETFs launch on NYSE Arca
Digital asset manager Grayscale has confirmed that two of its Ether exchange-traded funds (ETFs) will begin public trading on the NYSE Arca, marking a “pivotal moment” for its investors and the broader ETF market.
This launch comes a day after the United States Securities and Exchange Commission (SEC) signed the final approval for space ether (ETH) ETFs, allowing multiple issuers to begin trading their products. In a July 22 X post, Bloomberg analyst James Seifert reported that the Grayscale Ethereum Trust (ETHE) has not yet received official effective documents from the SEC, but it is expected to arrive in the morning when trading begins.
ETHE is currently the world's largest Ether exchange traded product, with $9.19 billion worth of ETH in holdings. ETHE charges investors a 2.5% management fee.
Greyscale's second product, the Greyscale Ethereum Mini Trust (ETH), waived fees for the first six months or until net assets under management reached $2 billion.
Once either threshold is reached, a 0.15% fee will apply, making it the cheapest spot Ether ETF offered in the US.
“ETH and ETHE enable investors to invest in Ethereum's potential to create markets, transform financial systems, leverage decentralized finance (DeFi) and innovate through the trusted ETP package – Ethereum without having to directly purchase, store or manage it,” Grayscale Managing Director John Hoffman said in a statement to Cointelegraph. They said.
Ether ETFs from BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck and Invesco Galaxy were also allowed to begin trading on Tuesday, July 23.
Grayscale will send $1 billion worth of Ether to Coinbase after the Ether ETF is approved
On Monday, July 22, Grayscale transferred more than $1 billion to Coinbase to launch the ETF.
The transfer of 292,263 Ether, worth a little over $1.01 billion, is the exact amount Grayscale said will be transferred from ETHE to Ethereum Mini Trust in a July 18 filing.
Related: Spot Ethereum ETFs Are Coming, But ETH Derivatives Markets Are Flat
The move “could slow the flow of grayscale,” Seifert said in a July 17 article on X.
Existing ETHE holders will receive the new ETHE-backed product at a 1:1 ratio without triggering a capital gains tax event.
Seifert and Bloomberg ETF analyst Eric Balchunas expect Ether ETFs to account for somewhere between 10% and 20% of the flows these products have seen since their launch six months ago.
However, Bitwise Chief Investment Officer Matt Hogan is confident that the spot Ether ETF will have a greater impact on the price of Ether than the Bitcoin ETF's position on Bitcoin.
Hugan predicts that the price of Ether will rise above the current all-time high of $5,000 before the end of 2024.
Magazine: Bitcoin's $500K Prediction, Spot Ether ETF ‘Troublesome Case' — Thomas Fahrer, X Flame Hall
