Grayscale has moved $1 billion worth of Ether to Coinbase, anticipating the launch of the first spot Ether exchange-traded funds (ETFs) in the United States. This significant transfer, recorded on July 22, aligns with blockchain data and suggests that Grayscale is gearing up for the ETF launch.
The day before the ETFs are set to begin trading, around 10% of the 292,000 Ether was moved from Coinbase’s hot wallet to the Grayscale Mini Trust, also known as wallet “0xab3.” This pre-seeding move indicates Grayscale’s preparation for the ETF launch, scheduled for July 23.
Coinbase will act as the custodian for eight out of the nine newly approved Ether ETFs. This mirrors its role with spot Bitcoin ETFs, where it already serves as the custodian for 10 out of the 11 existing ones.
On July 22, the U.S. Securities and Exchange Commission (SEC) gave the green light to the final S-1 registration statements necessary for the Ether ETFs to list on stock exchanges. Approved 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, while the iShares Ethereum Trust from BlackRock will debut on Nasdaq. Notably, Grayscale’s fund offers a competitive edge with the lowest waiver fee of 0.15% and a promotional 0% fee for the first six months of trading.
Ahead of the ETF launch, institutional investors have shown a strong bullish sentiment towards Ether. Eugene Cheung, head of institutions at Bybit, noted a significant increase in institutional Ether exposure, which rose from 6.54% to 14.29% following the ETF announcement. Retail investor allocation also saw a rise, albeit more cautiously, from 7.4% to 9.52%.
Cheung expressed optimism about Ether’s long-term price, predicting it could double in the next 18 months. This growing institutional interest, fueled by the new ETFs, could potentially drive Ether’s price higher.
Ether remains 28% below its all-time high of over $4,800, reached in November 2021. However, the introduction of these ETFs could provide the necessary boost for a significant price recovery.
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