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Digital asset manager Grayscale has confirmed its two spot Ether exchange-traded funds (ETFs) have officially started trading on the NYSE Arca, marking a “milestone” moment for its investors and the wider ETF market.
The launch comes one day after the United States Securities and Exchange Commission (SEC)&nbsp;<a href="https://cointelegraph.com/news/spot-ethereum-etfs-begin-trading-sec-approval">signed off on the final approval</a>&nbsp;for spot Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) ETFs,&nbsp;allowing several issuers to launch their products for trading. In a July 22 X post, Bloomberg analyst James Seyffart&nbsp;reported that the Grayscale Ethereum Trust (ETHE) had not yet received official effective documents from the SEC, but expected it to come on the morning of trading commencing.&nbsp;
ETHE is currently the world’s largest Ether-based exchange-traded product, with $9.19 billion worth of ETH in its holdings. ETHE will charge investors a 2.5% management fee. 
Grayscale’s second product, the Grayscale Ethereum Mini Trust (ETH), has waived fees for the first six months or until it reaches $2 billion in net assets under management. 
Once either threshold is reached, a 0.15% fee will take effect, making it the cheapest spot Ether&nbsp;ETF offered 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,” Grayscale’s managing director John Hoffman said in a statement sent to Cointelegraph.
Ether ETFs from BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck and Invesco Galaxy were also approved to begin trading on Tuesday, July 23.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/4fa8b86b-91a5-4c31-899a-7e29b24184e8.png" alt="Grayscale’s spot Ether ETFs launch on NYSE Arca" title="">
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 Details of the US listed spot Ether ETFs. Source: <a href="https://x.com/JSeyff/status/1815502364411040082" target="_blank" rel="noopener nofollow">James Seyffart</a>
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</figure>
<h3 data-ct-non-breakable="true" id="grayscale-sends-1-billion-worth-of-ether-to-coinbase-after-spot-ether-etf-approval">Grayscale sends $1 billion worth of Ether to Coinbase after spot Ether ETF approval</h3>
On Monday, July 22, Grayscale transferred over $1 billion of ETH to Coinbase in preparation for the launch of its ETFs. 
The 292,263 Ether&nbsp;transfer, worth a little over $1.01 billion, was the exact amount Grayscale <a href="https://www.sec.gov/Archives/edgar/data/1725210/000119312524181085/d796604ddef14c.htm" target="_blank" rel="noopener nofollow">said</a> it would transfer from ETHE to its Ethereum Mini Trust in a July 18 filing.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/63d0e00c-7392-47ed-ad26-6db3d9c2cad6.png" alt="Grayscale’s spot Ether ETFs launch on NYSE Arca" title="">
 <figcaption style="text-align: center;">
 Grayscale’s ETH transfers to Coinbase Custody on July 22. Source: Arkham Intelligence
 </figcaption>
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Related: <a href="https://cointelegraph.com/news/spot-ethereum-etfs-are-coming-but-eth-derivatives-markets-are-flat">Spot Ethereum ETFs are coming, but ETH derivatives markets are flat</a>
The move “should help alleviate some of the likely Grayscale outflows,” Seyffart <a href="https://x.com/JSeyff/status/1813672656748810369" target="_blank" rel="noopener nofollow">said</a> in a July 17 post on X.&nbsp;
Existing ETHE holders will receive the new Ether-backed product at a 1:1 ratio without triggering a capital gains tax event. 
Seyffart and fellow Bloomberg ETF analyst Eric Balchunas expect the spot Ether ETFs to muster somewhere between&nbsp;<a href="https://cointelegraph.com/news/ether-etfs-sidekick-bitcoin-etfs-bloomberg-analyst">10% to 20% of the flows</a> that spot Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) ETFs have seen since those products launched a little over six months ago.
However, Bitwise’s chief investment officer, Matt Hougan, is confident that the <a href="https://cointelegraph.com/news/ethereum-etfs-coming-what-you-need-know">spot Ether ETFs</a>&nbsp;may <a href="https://cointelegraph.com/news/spot-ethereum-etf-launch-price-predictions-cryptocurrency-trader-bitwise-matt-hougan">have a bigger impact</a> on Ether’s price than the <a href="https://cointelegraph.com/learn/bitcoin-etfs-a-beginners-guide-to-exchange-traded-funds">spot Bitcoin ETFs</a> have had on Bitcoin.
Hougan predicts Ether’s price will soar past its current all-time high to above $5,000 before the end of 2024. 
Magazine:<a href="https://cointelegraph.com/magazine/bitcoin-price-ethereum-etf-thomas-fahrer/"> Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer, X Hall of Flame</a>

Grayscale’s spot Ether ETFs launch on NYSE Arca

Inhoudsopgave

Cointelegraph

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