Ethereum
Bitcoin ETFs See $1.2 Billion Inflow as CBOE Sets Ethereum ETF Launch Date
Spot Bitcoin ETFs have racked up around $1.24 billion in inflows over the past week as spot markets recover.
Preliminary The figures According to Farside Investors, on Friday, July 19, inflows reached $384 million, with Fidelity leading the way with $140 million in inflows.
This marks the eleventh consecutive trading day with positive flows into these institutional investment products. Grayscale even saw $20 million inflows into its GBTC spot ETF on Friday, the first day of positive flows for the fund in a week.
Ethereum ETF Dates
On July 19, the CBOE announcement that five spot Ethereum ETFs will begin trading on July 23, “pending regulatory enforcement.”
The five products expected to begin trading next week are the 21Shares Core Ethereum ETF, the Fidelity Ethereum Fund, the Invesco Galaxy Ethereum ETF, the VanEck Ethereum ETF and the Franklin Ethereum ETF.
However, the Security and Exchange Commission has not yet formally approved the S-1 filings for the respective funds.
Most issuers have said they will temporarily waive or reduce fees to compete for market share, as reported by CryptoPotato.
On July 19, Grayscale also announced plans to spin off a portion of its flagship product, the Grayscale Bitcoin Trust (GBTC), into a new ETF, the Grayscale Bitcoin Mini Trust (BTC).
The firm will allocate 10% of its spot Bitcoin ETF assets to the new fund, which is expected to have a more competitive fee structure than the 1.5% charged on GBTC.
Additionally, the company will do the same when its Ethereum product converts to a spot ETF. Existing ETHE shareholders will receive a proportional distribution of shares of its new Grayscale Ethereum Mini Trust (ETH) on July 31.
On July 19, Bloomberg ETF analyst James Seyffart said that from a value perspective, “a theoretical person has $1,000 in ETHE or GBTC. After the split, that should be essentially $900 in the original fund and $100 in the new mini ETFs.”
ETHE Exodus?
There are currently 271,793 BTC worth about $18.2 billion in Grayscale’s GBTC ETF and $9.2 billion in Ethereum in its ETHE fund that has yet to be converted.
Grayscale’s crypto funds are among the oldest in the industry, launching GBTC in 2013 and ETHE in 2017.
There have been concern about a GBTC-like exodus from ETHE when it is converted, but the distribution to the more competitive Ethereum Mini Trust should alleviate some of the outflow pressure.