Prime

Spot

<ul>
 <li>Grayscale moved $1B worth ETH to Coinbase prime with approaching spot ETF trading.&nbsp;</li>
 <li>The ETF issuer has announced the highest initial and post-waiver fees in the market.</li>
</ul>
US spot Ethereum ETFs received approval from the SEC on Monday after leading issuers filed 424(b) forms. Grayscale issuing two of the nine spot ETFs was observed transferring ETH tokens worth $1.01 billion from its Coinbase Prime deposit onto the platform’s Hot Wallet 8 hours ago. This has led to market speculations, while some analysts have seen this as preparation for the ETF launch, others expressed uncertainty.&nbsp;
According to Arkham Intelligence <a href="https://platform.arkhamintelligence.com/explorer/entity/grayscale" target="_blank" rel="noopener noreferrer nofollow">data</a>, the ETF issuer transferred 292.263K ETH tokens to the Coinbase Prime Exchange. Following this, Coinbase Hot Wallet, which received the $1.01 billion worth of tokens, transferred the funds to different wallets of the Grayscale Mini trust. The Grayscale wallet currently holds 2.959 ETH tokens worth $10.20 billion.&nbsp;
Notably, when Grayscale initiated the transactions, market speculations rose. Analysts perceived the move as Grayscale attempting to rotate ETH for another altcoin such as SOL.&nbsp;
However, Nexyst Digital’s managing partner Jon Campagna, in his X account <a href="https://x.com/thecampsishere/status/1815522639051477432" target="_blank" rel="noopener noreferrer nofollow">stated</a> that the issuer is funding its Ethereum Mini ETF (ETH). The ETF giant is also issuing Grayscale spot Ethereum ETF with a ticker ETHE.&nbsp;
Jon Campagna tweeted:&nbsp;
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 “ In order to fund the 1/10 or 10% of the $10B AUM that ETHE has…they moved $1B, or 10% to Coinbase prime…Just as they stated they would do a week ago.”&nbsp;
</blockquote>
The US-based ETF issuer has received severe criticisms from market analysts for its high fees on spot ETFs. Grayscale currently has announced the highest initial fee and post-waiver fee in the market.&nbsp;
<h3 class="wp-block-heading" id="h-what-is-grayscale-aiming-with-two-spot-eth-etfs">What is Grayscale Aiming with Two Spot ETH ETFs?&nbsp;</h3>
Bloomberg’s ETF analyst, Eirc Balchunas also discussed Grayscale’s high fees. The issuer announced a standard fee of 2.50% for both initial and post-waiver periods. Its other competitors such as Franklin Templeton and <a href="https://thenewscrypto.com/vaneck-aims-to-dominate-the-spot-eth-etf-battle-by-waiving-initial-fees/" target="_blank" rel="noopener noreferrer nofollow">VanEck</a> have announced zero initial fees attempting to attract investors.&nbsp;
Moreover, Balchunas predicted that the high fees might cause Grayscale to see increased outflows. Additionally, he stated that the mini ETF on the other hand, might be extremely cheap.&nbsp;
In the past weeks, Grayscale’s movements within the spot Ethereum ETFs sector have been quoted as ‘dynamic’ and ‘interesting’ by market analysts. Meanwhile, despite the SEC’s <a href="https://thenewscrypto.com/multiple-spot-ethereum-etfs-approved-by-nyse-arca-awaits-sec-nod/" target="_blank" rel="noopener noreferrer nofollow">approval</a>, ETH prices haven’t yet priced in the ETF launch.&nbsp;
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Grayscale’s Massive $1B ETH Move Stirs Speculation Amid Spot ETF Launch

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