Grayscale Transfers 292,262 ETH Just Before Ethereum ETF Trading Goes Live
The U.S. Securities and Exchange Commission (SEC) has finally approved the much-awaited spot Ethereum ETF which will go live for trading on Tuesday morning, July 23. However, Grayscale is seen making massive ETH transfers to the tune of $1 billion as it prepares to launch ETHE and its mini-trust ETH.
Grayscale Transfers 292K ETH
In the latest post, Whale Alert reported that an unknown wallet transferred a total of 292,262 ETH valued at a total of over $1 billion from an unknown wallet to Coinbase Institutional. Bloomberg ETF strategist Eric Balchunas stated that it’s Grayscale that has been moving the funds from its Ethereum Trust (ETHE) to the Grayscale Ethereum mini-ETF (ETH). This could probably be the seed capital for the mini-Trust.
As reported, the Grayscale Ethereum mini Trust will have a lower management fee of just 15 basis points while competing with all other market issuers. Additionally, they have announced a complete fee waiver until $2 billion in net inflows.
Eth ETF race has already begun w/ a transfer from $ETHE to its mini-me = $ETH gonna begin its life w/ $1b and a category-low 15bp fee. That’s a new variable in this race that we didn’t have in btc race. https://t.co/7v6kh8Kw5Q
— Eric Balchunas (@EricBalchunas) July 22, 2024
Interestingly, another Bloomberg ETF strategist James Seyffart stated that while all other spot Ethereum ETF issuers submitted their documents on Monday, Grayscale has yet to do that. Seyffart added, “I’m still expecting them before trading tomorrow,” indicating that the delay might not be significant. Last week, Seyffart addressed a few concerns with the spin-off to the Grayscale mini-Trust and why it makes sense to have this product in the market.
However, this is not the first time that Grayscale is making the delay. They did the same with the GBTC launch in January this year.
.They did the same for GBTC, waited until the morning of launch pic.twitter.com/iTDwb3hpDi
— Scott Johnsson (@SGJohnsson) July 22, 2024
Also Read: Spot Ethereum ETF: Here Is The Last Sign To Watch Ahead of Launch
ETH Price Action Dull Before Ethereum ETF Trading
Just before the spot Ethereum ETFs go live for trading, the Ethereum price has come under some selling pressure down 1.5% and trading at $3,478 with a market cap of $418 billion. Analysts have been predicting that the ETF approval will be a sell-the-news event.
Also Read: Ethereum Price Analysis: Will Spot ETH ETF Be A Sell The News Event?
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