As a seasoned researcher with a background in finance and digital currencies, I have been closely monitoring the developments in the crypto market, particularly the recent surge in inflows to Bitcoin and Ethereum ETFs. The past week has seen an impressive $1.24 billion influx into these investment products, with institutional investors showing renewed interest.
Over the past week, approximately $1.24 billion has flowed into Bitcoin exchange-traded funds (ETFs) as the spot market recovers.
According to initial data from Farside Investors, approximately $384 million was invested on July 19, with Fidelity contributing the largest chunk at around $140 million.
As a crypto investor, I’ve noticed an impressive trend over the past eleven trading days. Institutional investment products have consistently seen a positive influx of funds during this period. Even Grayscale’s GBTC spot ETF reported an inflow of $20 million last Friday – marking the first positive day for the fund in over a week.
Ethereum ETF Dates
The CBOE made an announcement on July 19 that five Ethereum ETFs based on spot Ether will be available for trading starting July 23, subject to regulatory approval.
Five new Ethereum investment funds are slated to begin operations next week: 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF.
Cboe new listings…
It’s happening.
Almost go time.
— Nate Geraci (@NateGeraci) July 19, 2024
As a crypto investor, I’ve taken note that the Securities and Exchange Commission (SEC) hasn’t endorsed the S-1 filings for those particular funds yet.
Many institutions have announced their intention to suspend or reduce fees briefly to attract customers in a competitive crypto market, according to CryptoPotato’s reports.
On July 19, Grayscale revealed intentions to divide a segment of its primary Grayscale Bitcoin Trust (GBTC) into a fresh ETF named Grayscale Bitcoin Mini Trust (BTC).
The company plans to transfer 10% of its Bitcoins held in its ETF into the freshly established fund. This new investment vehicle is expected to offer a more attractive fee arrangement compared to GBTC’s 1.5%.
Additionally, when the company’s Ethereum offering transitions into a spot Exchange-Traded Fund (ETF), it will follow suit with the same actions. Shareholders of ETHE will be allocated a corresponding number of shares in Grayscale’s new Ethereum Mini Trust (ETH) on July 31.
On July 19, according to Bloomberg ETF analyst James Seyffart’s perspective, an hypothetical investor holding $1,000 in ETHE or GBTC would see their investment reduced to approximately $900 in the original fund and an additional $100 distributed among the new mini ETFs following the spinoffs.
As an analyst, I’ve been fielding numerous queries regarding Grayscale’s planned spin-offs for $ETHE and $ETH. The processes will be similar to those we’ve seen with $GBTC and $BTC. So if you currently hold 1,000 shares of $ETHE, you can expect to receive an equal number of mini $ETH shares upon completion of the spin-off.
— James Seyffart (@JSeyff) July 19, 2024
ETHE Exodus?
Approximately $18.2 billion is held in Grayscale’s GBTC ETF in the form of 271,793 Bitcoin, while the ETHE fund contains Ethereum valued at around $9.2 billion as of yet to be converted.
The crypto investment funds offered by Grayscale have a rich history within the industry, having been established as early as 2013 with the introduction of GBTC, and following suit with ETHE in 2017.
Concerns have arisen regarding a potential mass withdrawal from ETHE akin to what occurred with GBTC upon conversion. However, the distribution of these assets to the more competitive Ethereum Mini Trust is expected to ease some of the pressure causing outflows.
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2024-07-21 16:29