United

Prime

Update July 23, 12:25 pm UTC: This article has been updated to clarify the listing is on the New York Stock Exchange Arca.
Grayscale transferred $1 billion worth of Ether to Coinbase on July 22, signaling the asset manager’s preparation for the launch of spot Ether exchange-traded funds (ETFs) in the United States, according to blockchain data.
Following the <a href="https://etherscan.io/tx/0xe37e6c5b199ae498ba3308ae9c9ecbedaeb98510492a22194536dc52d05ce468" target="_blank" rel="noopener nofollow">transfer</a>, approximately 10% of the 292,000 Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) was transferred from the Coinbase hot wallet to the Grayscale Mini Trust, or wallet “0xab3,” <a href="https://x.com/iChainfo/status/1815654187742765266" target="_blank" rel="noopener nofollow">according</a> to a July 23 X post by data provider iChaininfo.
The billion-dollar transfer came a day before the launch of the <a href="https://cointelegraph.com/news/spot-ethereum-etfs-begin-trading-sec-approval">first batch of US-based spot Ether ETFs</a>, which will begin trading on July 23. The large transfers suggest that Grayscale is pre-seeding funds to prepare for the ETF launch.
Coinbase exchange will be the custodian for eight of the nine newly approved Ether ETFs. The exchange is already the custodian powering 10 of the 11 existing spot Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) ETFs, according to a July 22 <a href="https://www.coinbase.com/blog/momentous-approvals-spot-etfs-to-usher-in-bitcoins-next-chapter-and" target="_blank" rel="noopener nofollow">announcement</a>.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/31253a84-540e-44fb-8011-e07f226e7f50.png" alt="Grayscale transfers $1B in ETH to Coinbase ahead of Ether ETF launch" title="">
 <figcaption style="text-align: center;">
 Coinbase ETF infographic. Source: Coinbase
 </figcaption>
</figure>
<h2 data-ct-non-breakable="true" id="sec-gives-final-regulatory-nod-to-ether-etfs">SEC gives final regulatory nod to Ether ETFs</h2>
On July 22, the US Securities and Exchange Commission (SEC) approved the final S-1 registration statements necessary for the ETFs to launch on stock exchanges.
The approved Ether ETF issuers include <a href="https://www.sec.gov/Archives/edgar/data/2000638/000135445724000522/ETHA_8-A_Cert.pdf" target="_blank" rel="noopener nofollow">BlackRock</a>, Fidelity, 21Shares, Bitwise, Franklin Templeton, <a href="https://www.sec.gov/Archives/edgar/data/1860788/000141783524000115/8A_Cert_ETHV.pdf" target="_blank" rel="noopener nofollow">VanEck</a> and Invesco Galaxy.
Related: <a href="https://cointelegraph.com/news/ether-bullish-setup-h2-2024">Ether’s ‘most obvious bullish setup’ is set for H2 2024, says former Wall Street trader</a>
Grayscale’s Ethereum Trust will be listed on the New York Stock Exchange Arca (NYSE Arca), while the BlackRock-issued iShares Ethereum Trust will be listed on the Nasdaq.
Out of all the prospective Ether ETF issuers, Grayscale’s fund came in with the lowest waiver fee of 0.15%, <a href="https://x.com/JSeyff/status/1814050924966392244" target="_blank" rel="noopener nofollow">according</a> to James Seyffart, an ETF analyst at Bloomberg.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/efe533b0-3953-4b87-86c9-a954b5fc144c.png" alt="Grayscale transfers $1B in ETH to Coinbase ahead of Ether ETF launch" title="">
 <figcaption style="text-align: center;">
 Eth ETF issuer fees. Source: James Seyffart
 </figcaption>
</figure>
The Grayscale Ether ETF will offer 0% fees for the first six months of trading.
Related: <a href="https://cointelegraph.com/news/ether-new-all-time-high-3-5k-ethereum-etf-debut">Can ETH price crack $3.5K? Ethereum ETF debut will precede new highs, analysts say</a>
<h2 data-ct-non-breakable="true" id="institutions-interest-could-2x-ether-price-in-the-next-six-months">Institutions interest could 2x Ether price in the next six months</h2>
A week ahead of the ETF launch, <a href="https://cointelegraph.com/news/institutions-bullish-ether-ahead-eth-etf-launch">institutional investors were more bullish</a>&nbsp;on Ether than retail investors, according to Eugene Cheung, head of institutions at Bybit, who told Cointelegraph:
<blockquote data-ct-non-breakable="true">
 “Our recent report shows that institutional investors are bullish on ETH, more so than retail investors.”
</blockquote>
Institutional investors doubled their Ether exposure shortly after the <a href="https://cointelegraph.com/learn/different-types-of-etfs">ETF</a> was announced, from 6.54% to 14.29%, <a href="https://www.bybit.com/en/press/post/bybit-s-institutional-investors-have-tripled-eth-exposure-ahead-of-etf-launch-bltfe46cf9d503d51be" target="_blank" rel="noopener nofollow">according</a> to the report referenced by Cheung. During the same period, retail investor allocation rose to 9.52% from 7.4%, showing a cautiously optimistic sentiment toward Ether’s price.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/1546e34b-488f-4751-8d93-52fcb0388765.png" alt="Grayscale transfers $1B in ETH to Coinbase ahead of Ether ETF launch" title="">
 <figcaption style="text-align: center;">
 Institutional investor allocation to ETH. Source: Bybit
 </figcaption>
</figure>
The growing interest introduced by the ETFs could help Ether price double in the next six months, according to Bybit’s Cheung, who added:
<blockquote data-ct-non-breakable="true">
 “I am optimistic about ETH’s long-term price, expecting it to double in the next 18 months, giving potential investors an excellent risk/reward ratio.”
</blockquote>
Ether is currently 28% down from its all-time high of above $4,800, reached in November 2021.
Magazine: <a href="https://cointelegraph.com/magazine/pudgy-penguins-pixelverse-ether-etfs-price-impact-hodlers-digest-july-14-20/">Pudgy Penguins lands in Pixelverse, Ether ETFs, and more: Hodler’s Digest, July 14-20</a>

Grayscale transfers $1B in ETH to Coinbase ahead of Ether ETF launch

Table of Contents

Cointelegraph

Other articles published on Jul 23, 2024

All Hamster Kombat Daily Combo and Cipher Code: Updated

Amid Rising Toncoin (TON) & Cronos (CRO) Prices, BlockDAG’s $2M Giveaway Attracts 98k+ Entries

BlockFi Sells FTX Claims at Premium

Bitcoin ETF Inflow Extremely Active in July With Over $41,000 BTC Accumulated

Partnership announcement between SOMESING & Allfeat Labs

ETHTrustFund DAO allegedly stole $2 million and laundered funds

Join our free newsletter for daily crypto updates!