Grayscale Ethereum ETFs Launch on NYSE
23 Jul, 2024 ● أخبار العملات المشفرة
Digital asset manager Grayscale has announced that its two spot Ethereum exchange-traded funds (ETFs) have begun trading on the NYSE Arca, marking a significant milestone for both its investors and the broader ETF market.
This launch follows the United States Securities and Exchange Commission (SEC) granting final approval for spot Ether ETFs, which allowed multiple issuers to begin trading their products
On July 22, Bloomberg analyst James Seyffart reported via X that the Grayscale Ethereum Trust (ETHE) had not yet received official documents from the SEC but expected them on the first day of trading.
Currently, ETHE is the largest Ether-based exchange-traded product globally, holding $9.19 billion worth of ETH and charging a 2.5% management fee.
Grayscale’s other product, the Grayscale Ethereum Mini Trust (ETH), has waived fees for the initial six months or until it manages $2 billion in net assets.
After reaching either milestone, a 0.15% fee will be applied, making it the most affordable spot Ether ETF in the US.
“ETH and ETHE will allow investors to invest in Ethereum’s potential to create markets, transform financial systems, utilize decentralized finance (DeFi), and drive innovation through the trusted ETP wrapper — without the need to buy, store, or manage Ethereum directly,” stated Grayscale’s managing director John Hoffman in a statement to Cointelegraph.
Ether ETFs from companies such as BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy were also approved to start trading on Tuesday, July 23.
In preparation for the ETF launch on July 22, Grayscale transferred over $1 billion worth of ETH to Coinbase.
The transfer involved 292,263 Ether, valued slightly above $1.01 billion, which Grayscale had previously indicated it would move from ETHE to its Ethereum Mini Trust in a filing dated July 18.
This action “should help alleviate some of the likely Grayscale outflows,” Seyffart noted in a July 17 post on X.
Current ETHE holders will receive the new Ether-backed product at a 1:1 ratio, avoiding a capital gains tax event.
Seyffart and fellow Bloomberg ETF analyst Eric Balchunas estimate that spot Ether ETFs will attract 10% to 20% of the flows seen by spot Bitcoin ETFs since their launch over six months ago.
However, Bitwise’s chief investment officer, Matt Hougan, believes that the spot Ether ETFs could have a more substantial impact on Ether’s price compared to the influence spot Bitcoin ETFs have had on Bitcoin.
Hougan anticipates that Ether’s price will surpass its current all-time high and exceed $5,000 before the end of 2024.
Sources:
https://cointelegraph.com/news/grayscale-confirms-ethereum-etfs-begun-trading-nyse
https://www.sec.gov/Archives/edgar/data/1725210/000119312524181085/d796604ddef14c.htm
