Grayscale transfers $1B in ETH to Coinbase ahead of Ether ETF launch
(Coin Telegraph)-24/07/2024
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 transfer, approximately 10% of the 292,000 Ether was transferred from the Coinbase hot wallet to the Grayscale Mini Trust, or wallet “0xab3,” according to a July 23 X post by data provider iChaininfo.
The billion-dollar transfer came a day before the launch of the first batch of US-based spot Ether ETFs, 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 ETFs, according to a July 22 announcement.
SEC gives final regulatory nod to Ether ETFs
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 BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck and Invesco Galaxy.
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%, according to James Seyffart, an ETF analyst at Bloomberg.
Institutions interest could 2x Ether price in the next six months
A week ahead of the ETF launch, institutional investors were more bullish on Ether than retail investors, according to Eugene Cheung, head of institutions at Bybit, who told Cointelegraph:
“Our recent report shows that institutional investors are bullish on ETH, more so than retail investors.”
Institutional investors doubled their Ether exposure shortly after the ETF was announced, from 6.54% to 14.29%, according 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.
The growing interest introduced by the ETFs could help Ether price double in the next six months, according to Bybit’s Cheung, who added:
“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.”
Ether is currently 28% down from its all-time high of above $4,800, reached in November 2021.
