Bitcoin ETFs See $1.2B Inflow as CBOE Sets Ethereum ETF Launch Date

Spot Bitcoin ETFs saw $1.24 billion in inflows over the past week as spot markets recovered.

preliminary Numbers Farside Investors forecasts Friday, July 19, saw $384 million in inflows, with Fidelity leading the way with $140 million inflows.

This marks eleven consecutive days of positive inflows into these institutional investment products. Grayscale even saw $20 million inflows into its GBTC exchange-traded fund on Friday, the fund’s first positive inflow day in a week.

Ethereum ETF Dates

On July 19, the Chicago Board of Options Exchange Advertise Five Ethereum exchange-traded funds (ETFs) will begin trading on July 23, “pending regulatory effectiveness.”

The five products scheduled to start trading next week are the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF.

New Cboe listings…

It happens.

It’s almost time. pic.twitter.com/V1wCcxYoCH

– Nate Geraci (@NateGeraci) July 19, 2024

However, the SEC has not yet formally signed the S-1 filings for the funds in question.

Most issuers have said they will temporarily waive or reduce fees to compete for market share, CryptoPotato reported.

Grayscale also announced on July 19 its plans to spin off part of its flagship Grayscale Bitcoin Trust (GBTC) into a new exchange-traded fund, the Grayscale Bitcoin Mini Trust (BTC).

The company will allocate 10% of its Bitcoin ETF assets to the new fund, which will likely have a more competitive fee structure than the 1.5% charged on GBTC.

Furthermore, the company will do the same when its Ethereum product is converted into a spot ETF. Existing ETHE shareholders will receive a proportionate distribution of shares in the new Grayscale Ethereum Mini Trust (ETH) on July 31.

On July 19, Bloomberg ETF analyst James Seyvart said that from a value standpoint, “a theoretical person owns $1,000 in ETHE or GBTC. After the mergers happen, it should essentially be $900 in the original fund and $100 in the new mini ETF.”

I am making a topic about the situation. @the colour greyBranch of $ Ethereum & Ethereum Because I’ve gotten about a million questions about this. The mechanics will be basically the same for $GBTC & Bitcoin Subsidiary. If you own 1,000 shares of $ EthereumYou must receive 1000 shares of penny stock. Ethereum. 1/ pic.twitter.com/Er66mj5L46

— James Seyff (@JSeyff) July 19, 2024

Exit?

There are currently 271,793 BTC worth about $18.2 billion in Grayscale’s GBTC ETF and $9.2 billion in Ethereum in the yet-to-be-converted ETHE fund.

Grayscale’s crypto funds are among the longest-running in the industry, with GBTC launching in 2013 and ETHE in 2017.

There have been concerns about a similar migration to that of GBTC from ETHE when it is converted, but the distribution to the more competitive Ethereum Mini Trust should alleviate some of the outflow pressure.