Bitcoin
Bitcoin ETFs See $1.2 Billion Inflow as CBOE Sets Ethereum ETF Launch Date
Spot Bitcoin ETFs garnered around $1.24 billion in inflows last week as spot markets recover.
Preliminary figures Data from Farside Investors suggests that on Friday, July 19, there were inflows of $384 million, with Fidelity leading the pack with inflows of $140 million.
This marks eleven consecutive trading days of positive flow into these institutional investment products. Even Grayscale saw a $20 million inflow into its GBTC spot ETF on Friday, the first day of positive flow into the fund in a week.
Ethereum ETF Dates
On July 19, the CBOE announced that five Ethereum spot ETFs will begin trading on July 23, “pending regulatory effectiveness.”
The five products that will begin trading next week are the 21Shares Core Ethereum ETF, the Fidelity Ethereum Fund, the Invesco Galaxy Ethereum ETF, the VanEck Ethereum ETF and the Franklin Ethereum ETF.
However, the Securities and Exchange Commission still needs to officially sign off on the S-1 filings for the respective funds.
Most issuers have stated that they will temporarily waive or discount fees to compete for market share, as reported by CryptoPotato.
Additionally, on July 19, Grayscale announced plans to spin off a portion of its flagship Grayscale Bitcoin Trust (GBTC) into a new ETF, the Grayscale Bitcoin Mini Trust (BTC).
The firm will allocate 10% of its spot Bitcoin ETF assets to the new fund, which will likely have a more competitive fee structure than the 1.5% charged on GBTC.
Additionally, the company will do the same when its Ethereum product is converted into a spot ETF. Existing ETHE shareholders will receive a pro-rata distribution of shares in its new Grayscale Ethereum Mini Trust (ETH) on July 31.
On July 19, Bloomberg ETF analyst James Seyffart said that from a value perspective, “a theoretical person has $1,000 in ETHE or GBTC. After the spinoffs occur, it should essentially be $900 in the original fund and $100 in the new mini ETFs.”
ETHE Exodus?
There are currently 271,793 BTC worth around $18.2 billion in Grayscale’s GBTC ETF and $9.2 billion worth of Ethereum in its yet-to-be-converted ETHE fund.
Grayscale’s crypto funds are among the oldest in the industry, with GBTC launching in 2013 and ETHE in 2017.
There was concern about a similar exodus as GBTC from ETHE when it converts, but the distribution to the more competitive Ethereum Mini Trust should alleviate some of the outflow pressure.