Ethereum

Grayscale Tries to Maintain Leading Position in Ether ETF Battle

Published

4 months ago

24 July, 2024

Chain Feed Staff

Grayscale Tries to Maintain Leading Position in Ether ETF Battle

Representation of the Gayscale cryptocurrency and logo displayed on a phone screen.

Jakub Porzycki | Nurphoto | Getty Images

Grayscale, founded in 2013, has spent years building a fund that holds more than $9 billion worth of ether. That fund has now been converted into an ETF, one of two the firm will offer. Grayscale is a unit of Barry Silbert’s crypto conglomerate Digital Currency Group.

With the SEC paving the way for ETFs, Grayscale will have plenty of rivals and investors will be able to hunt for the lowest fees. Major financial firms including Fidelity Investments, Franklin Templeton, Black rock and Invesco, are already on the market with their own spot ether ETFs.

The same thing happened in January, when Bitcoin ETFs were approveda decision that led many investors to abandon Grayscale’s products in favor of cheaper alternatives.

On their first day of trading on Tuesday, spot ether ETFs collectively recorded over $1 billion in volume, with JP Morgan Analysts estimate net sales at $104 million.

As money poured into the new offerings, the Grayscale Ethereum Trust (ETHE) saw $485 million in redemptions. JPMorgan attributed the outflow to investors likely moving to cheaper alternatives or using the ETF conversion to capitalize on increased liquidity compared to the previous trust structure. Second-day trading was not yet available at press time.

In the Bitcoin ETF In the market, Grayscale has struggled to manage the flood of competition.

Grayscale began trading shares of its Bitcoin Trust (GBTC) fund in 2015 as a closed-end fund in what Morningstar’s Bryan Armour previously described as “a kind of monopoly.” In the first seven months of trading after converting from a trust to an ETF, the company saw outflows of nearly $18.7 billion, according to JPMorgan, largely because its 1.5% management fee is significantly higher than that of its competitors.

In May, BlackRock exceeds Grayscale is getting into assets with its iShares Bitcoin ETF. Blackrock’s ETF has a fee, excluding waivers, of 0.25%.

Along with Ethereum, Grayscale offers ETHE, which charges a 2.5% fee, 10 times higher than the next highest fee among newly listed funds. Grayscale also divested 10% of its assets to form a mini Ethereum ETF designed for retail clients. Grayscale Ethereum Mini Trust (ETH) This is an economical product with fees of 0.15%, the lowest of the new ETFs.

Other issuers in this category charge fees between 0.19% and 0.25%. Most issuers waive the fee initially, and some do so for up to a year.

Grayscale’s David LaValle, the firm’s global head of ETFs, told CNBC in a statement that ETHE “has been and continues to be a reliable and effective tool for investors seeking exposure to Ethereum in the form of a U.S.-regulated security.”

Since its IPO in June 2019, its Ethereum fund has posted annual returns of 61%, LaValle said, adding that the Ether mini ETF “came to market with the lowest management expense ratio.” Between its two products, Grayscale has the highest and lowest management fees.

LaValle said the “big picture” is that the $1 billion in first-day volume “is a testament to the many industry participants who are stepping up to play their part in supporting investors and the Ethereum ETP ecosystem.”

Figuring out how to navigate the new ETF world will be the responsibility of the old hands Goldman Sachs Peter Mintzberg, who was appointed Grayscale CEO in May, just days before BlackRock overtook Grayscale’s Bitcoin ETF in terms of assets.

Mintzberg replaces Michael Sonnenshein, who led Grayscale Investments for a decade. That role took him around the world, from the World Economic Forum in Davos to virtually every major cryptocurrency conference.

During Sonnenshein’s tenure, the company led the largest Bitcoin funds, with more than $43 billion in assets under management at its peakGrayscale dominated the crypto fund management industry, giving it considerable pricing power. It was considered by many to be the crown jewel of Silbert’s crypto empire.

In a historic moment for the crypto industry, Sonnenshein led Grayscale to a victory in its legal battle with the Securities and Exchange Commission regarding its application to convert GBTC into a spot Bitcoin ETF. The victory paved the way for broad approval of bitcoin spot ETFs and helped cement the cryptocurrency as a legitimate asset class.

Although Sonneshein has clarified Grayscale’s legal path, the company’s competitive advantage is more unclear than ever. Press release In May, he announced his resignation, saying he was leaving to “pursue other interests.” His LinkedIn profile identifies him as the former CEO of Grayscale and says he is an advisor to several companies. Sonnenshein did not respond to a request for comment.

Silbert stepped down as Grayscale’s chairman in December and was replaced by Mark Shifke, DCG’s chief financial officer. Mintzberg will officially take over as CEO in mid-August. Grayscale’s chief financial officer, Edward McGee, will lead the company in the interim.

Beyond Grayscale, DCG was beaten In the wake of the 2022 cryptocurrency crisis, lending firm Genesis has finally filed for bankruptcy protection. bankruptcy after having been accused by the SEC with the sale of unregistered securities. In May, New York Attorney General Letitia James ruler with Genesis for $2 billion to repay defrauded investors.

While Grayscale has its challenges, the company is benefiting from a rebound in the cryptocurrency market over the past 18 months. Bitcoin’s price has quadrupled since late 2022, and GBTC has done even better, increasing Ethereum’s price more than sevenfold.

DCG’s revenue increased 51% in the first quarter compared to the previous year, and the company says it has repaid all of its debt, with its only remaining debt being to Genesis.

Grayscale is trying to ride this renewed enthusiasm by writing in a Press release Tuesday, “customer demand is increasing in line with the maturation of the crypto asset class.”

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Ethereum

QCP sees Ethereum as a safe bet amid Bitcoin stagnation

Published

4 months ago

31 July, 2024

Chain Feed Staff

QCP, a leading trading firm, has shared key observations on the cryptocurrency market. Bitcoin’s struggle to surpass the $70,000 mark has led QCP to predict Selling pressure is still strong, with BTC likely to remain in a tight trading range. In the meantime, Ethereum (ETH) is seen as a more promising investment, with potential gains as ETH could catch up to BTC, thanks to decreasing ETHE outflows.

Read on to find out how you can benefit from it.

Bitcoin’s Struggle: The $70,000 Barrier

For the sixth time in a row, BTC has failed to break above the $70,000 mark. Bitcoin is at $66,048 after a sharp decline. Many investors sold Bitcoin to capitalize on the rising values, which caused a dramatic drop. The market is becoming increasingly skeptical about Bitcoin’s rise, with some investors lowering their expectations.

Despite the continued sell-off from Mt. Gox and the US government, the ETF market remains bullish. There is a notable trend in favor of Ethereum (ETH) ETFs as major bulls have started investing in ETFs, indicating a bullish sentiment for ETH.

QCP Telegram Update UnderlinesIncreased market volatility. The NASDAQ has fallen 10% from its peak, led by a pullback in major technology stocks. Currency carry trades are being unwound and the VIX, a measure of market volatility, has jumped to 19.50.

The main factors driving this uncertainty are Value at Risk (VaR) shocks, high stock market valuations and global risk aversion sentiment. Commodities such as oil and copper have also declined on fears of an economic slowdown.

Additionally, QCP anticipates increased market volatility ahead of the upcoming FOMC meeting, highlighting the importance of the Federal Reserve’s statement and Jerome Powell’s subsequent press conference.

A glimmer of hope

QCP notes a positive development in the crypto space with an inflow of $33.7 million into ETH spot ETFs, which is giving a much-needed boost to ETH prices. However, they anticipate continued outflows of ETHE in the coming weeks. The recent Silk Road BTC moves by the US government have added to the market uncertainty.

QCP suggests a strategic trade involving BTC, which will likely remain in its current range, while ETH offers a more promising opportunity. They propose a trade targeting a $4,000-$4,500 range for ETH, which could generate a 5.5x return by August 30, 2024.

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Ethereum

Ethereum Whale Resurfaces After 9 Years, Moves 1,111 ETH Worth $3.7 Million

Published

4 months ago

31 July, 2024

Chain Feed Staff

Ethereum records $17.9 billion in spot volume despite 3% drop

An Ethereum ICO participant has emerged from nearly a decade of inactivity.

Lookonchain, a smart on-chain money tracking tool, revealed On X, this long-inactive participant recently transferred 1,111 ETH, worth approximately $3.7 million, to a new wallet. This significant move marks a notable on-chain movement, given the participant’s prolonged dormancy.

The Ethereum account in question, identified as 0xE727E67E…B02B5bFC6, received 2,000 ETH on the Genesis block over 9 years ago.

Screenshot 2024 07 30 at 171307

This initial allocation took place during the Ethereum ICOwhere the participant invested in ETH at around $0.31 per coin. The initial investment, worth around $620 at the time, has now grown to millions of dollars.

Recent Transactions and Movements

The inactive account became active again with several notable output transactions. Specifically, the account transferred 1,000 ETH, 100 ETH, 10 ETH, 1 ETH, and 1 more ETH to address 0x7C21775C…2E9dCaE28 within a few minutes. Additionally, it moved 1 ETH to 0x2aa31476…f5aaCE9B.

Additionally, in the latest round of transactions, the address transferred 737,995 ETH, 50 ETH, and 100 ETH, for a total of 887,995 ETH. These recent activities highlight a significant movement of funds, sparking interest and speculation in the crypto community.

Why are whales reactivating?

It is also evident that apart from 0xE727E67E…B02B5bFC6, other previously dormant Ethereum whales are waking up with significant transfers.

In May, another dormant Ethereum whale made headlines when it staked 4,032 ETHvalued at $7.4 million, after more than two years of inactivity. This whale initially acquired 60,000 ETH during the Genesis block of Ethereum’s mainnet in 2015.

At the time, this activity could have been related to Ethereum’s upgrade known as “Shanghai,” which improved the network’s scalability and performance. This whale likely intended to capitalize on the price surge that occurred after the upgrade.

Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Ethereum

Only Bitcoin and Ethereum are viable for ETFs in the near future

Published

4 months ago

31 July, 2024

Chain Feed Staff

BlackRock: Only Bitcoin and Ethereum Are Viable for ETFs in the Near Future

Bitcoin and Ethereum will be the only cryptocurrencies traded via ETFs in the near future, according to Samara Cohen, chief investment officer of ETFs and indices at BlackRock, the world’s largest asset manager.

In an interview with Bloomberg TV, Cohen explained that while Bitcoin and Ethereum have met BlackRock’s rigorous criteria for exchange-traded funds (ETFs), no other digital asset currently comes close. “We’re really looking at the investability to see what meets the criteria, what meets the criteria that we want to achieve in an ETF,” Cohen said. “Both in terms of the investability and from what we’re hearing from our clients, Bitcoin and Ethereum definitely meet those criteria, but it’s going to be a while before we see anything else.”

Cohen noted that beyond the technical challenges of launching new ETFs, the demand for other crypto ETFs, particularly Solana, is not there yet. While Solana is being touted as the next potential ETF candidate, Cohen noted that the market appetite remains lacking.

BlackRock’s interest in Bitcoin and Ethereum ETFs comes after the successful launch of Ethereum ETFs last week, which saw weekly trading volume for the crypto fund soar to $14.8 billion, the highest level since May. The success has fueled speculation about the next possible ETF, with Solana frequently mentioned as a contender.

Solana, known as a faster and cheaper alternative to Ethereum, has been the subject of two separate ETF filings in the US by VanEck and 21Shares. However, the lack of CME Solana futures, unlike Bitcoin and Ethereum, is a significant hurdle for SEC approval of a Solana ETF.

Despite these challenges, some fund managers remain optimistic about Solana’s potential. Franklin Templeton recently described Solana as an “exciting and major development that we believe will drive the crypto space forward.” Solana currently accounts for about 3% of the overall cryptocurrency market value, with a market cap of $82 billion, according to data from CoinGecko.

Meanwhile, Bitcoin investors continue to show strong support, as evidenced by substantial inflows into BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT). On July 22, IBIT reported inflows of $526.7 million, the highest single-day total since March. This impressive haul stands in stark contrast to the collective inflow of just $6.9 million seen across the remaining 10 Bitcoin ETFs, according to data from Farside Investors. The surge in IBIT inflows coincides with Bitcoin’s significant $68,000 level, just 8% off its all-time high of $73,000.

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Ethereum

Ethereum Posts First Consecutive Monthly Losses Since August 2023 on New ETFs

Published

4 months ago

31 July, 2024

Chain Feed Staff

Ethereum sees first monthly consecutive losses since August 2023 amid new ETFs

Available exclusively via

Bitcoin ETF vs Ethereum: A Detailed Comparison of IBIT and ETHA

Andjela Radmilac · 3 days ago

CryptoSlate’s latest market report takes an in-depth look at the technical and practical differences between IBIT and BlackRock’s ETHA to explain how these products work.

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