Ethereum

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Recent reports indicate that Grayscale transferred $1.01 billion worth of Ethereum to Coinbase Prime. This is in preparation for the U.S. debut of Ethereum-based exchange-traded funds (ETFs), which have been approved to start trading as from today. 
This early transfer has led market speculators to wonder if Grayscale might reallocate its Ethereum holdings to other cryptocurrencies like Solana. 
However, Jon Campagna, the managing partner at crypto hedge fund Nexyst Digital and a former associate at Coinfund and BlackRock, refuted these claims. In a post on X, Campagna stated that Grayscale is unlikely to reallocate its Ethereum assets. 
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 This is a bit deceiving. On July 18th Grayscale carved off 1/10 of all ETHE holdings into a new “ETH” ticker for their ETF. They said the new ticker “ETH” would go live and ETHE holders would get their 1/10 ETH etf position tomorrow, July 23rd. In order to fund the 1/10 or 10% of…— Jon Campagna (@thecampsishere) <a href="https://twitter.com/thecampsishere/status/1815522639051477432?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">July 22, 2024</a>
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This move follows Grayscale’s recent decision to shift 10% of its Grayscale Ethereum Trust (ETHE) holdings into a separate Ethereum ETF (ETH) on July 18. This transition is part of the preparations for the new fund, which is expected to become active on Wednesday, with ETHE holders receiving proportional ETF positions. 
Despite maintaining a 2.5% fee on ETHE, which is higher than its competition, Grayscale’s strategy seems to be aimed at retaining more assets under its management by offering the lower-cost ETH ticker. 
Following the SEC <a href="https://www.cryptotimes.io/2024/07/23/sec-approves-spot-ethereum-etfs/" target="_blank" rel="noreferrer noopener">approval</a> for Spot Ethereum to commence trading, Wintermute, an algorithmic trading firm, predicted that demand for Ethereum ETFs might be lower than anticipated.&nbsp; 
However, Matt Hougan, chief investment officer at Bitwise Asset Management, remains optimistic and has projected that Ethereum ETFs could reach <a href="https://www.cryptotimes.io/2024/06/27/ethereum-etfs-could-draw-15b-by-2025-says-bitwise-cio/" target="_blank" rel="noreferrer noopener">$15 billion within the first 18 months</a> of trading. 
Moreover, Grayscale is just one among several major investment firms, including BlackRock, Fidelity, and Franklin Templeton, preparing to launch Ethereum ETFs, with demand for these funds projected to be between $3.2 billion and $4 billion.

Grayscale Transfers $1.01B Ethereum to Coinbase Prime

The Crypto Times

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