Grayscale Moves $1 Billion into Ether Mini ETF Ahead of Ethereum ETF Launch
Asset manager Grayscale was identified moving $1b in Ether as it prepares to transform its multibillion-dollar Ethereum Trust into two ETFs with varying fees.
It follows the SEC approving several spot Ethereum ETFs to begin trading on Tuesday, July 23. These include ETFs from 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy, all launching after weeks of revisions to their registration statements.
On Tuesday, blockchain monitoring service Whale Alert noted that an unidentified wallet moved 292,262 ETH, worth more than $1b, to Coinbase Institutional.
Bloomberg ETF strategist Eric Balchunas suggested that Grayscale is transferring funds from its Trust to its new Grayscale Ethereum mini-ETF. The amount could likely be seed capital for the mini-Trust. According to its website, the Grayscale Ethereum Trust currently holds 2.6m ETH.
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
Grayscale plans to transform its Ethereum Trust (ETHE), which manages roughly $10b in assets, into an ETF while maintaining its current 2.5% fee. Additionally, the firm has structured its Mini Ethereum Trust (ETH) to allocate 10% of ETHE’s ether holdings to this more affordable product.
The Grayscale Ethereum Mini Trust (ETH) is aimed at attracting retail investors. Each share of this mini trust, distinct from Grayscale’s primary ether ETF (ETHE), provides a smaller portion of the underlying ether compared to its larger counterpart. Thus, its price is correspondingly lower.
Meanwhile, Bloomberg ETF
