Grayscale has yet to submit official documents for its mini-Trust, unlike other spot Ethereum ETF issuers, and the ETH price is currently under selling pressure. The U.S. Securities and Exchange Commission (SEC) has finally approved the long-anticipated spot Ethereum ETF, set to go live on Tuesday morning, July 23. Amid this development, Grayscale has made significant ETH transfers worth $1 billion in preparation for launching ETHE and its mini-Trust ETH.
Grayscale Moves 292K ETH
According to Whale Alert, an unknown wallet transferred 292,262 ETH, valued at over $1 billion, to Coinbase Institutional. Bloomberg ETF strategist Eric Balchunas confirmed that Grayscale is behind these transfers, moving funds from its Ethereum Trust (ETHE) to the Grayscale Ethereum mini-ETF (ETH). This is likely seed capital for the mini-Trust.
The Grayscale Ethereum mini-Trust will feature a lower management fee of just 15 basis points, positioning it competitively against other market issuers. Additionally, Grayscale has announced a complete fee waiver until reaching $2 billion in net inflows.
Eric Balchunas tweeted about this strategic move, highlighting that the transfer from ETHE to its mini-Trust will start with $1 billion and a category-low fee of 15 basis points, adding a new variable to the ETF race.
Interestingly, Bloomberg ETF strategist James Seyffart noted that while other spot Ethereum ETF issuers submitted their documents on Monday, Grayscale has not yet done so. Seyffart remains optimistic, expecting Grayscale to submit the necessary paperwork before trading begins. Last week, he addressed some concerns about the spin-off to the Grayscale mini-Trust, explaining why this product makes sense in the market.
This delay is not unprecedented for Grayscale, as they faced similar issues with the GBTC launch in January this year.
Ethereum Price Action Ahead of ETF Launch
As the spot Ethereum ETFs prepare to go live, Ethereum's price has experienced some selling pressure, down 1.5% and trading at $3,478, with a market cap of $418 billion. Analysts have predicted that the ETF approval could trigger a "sell-the-news" event, impacting Ethereum's price movement.
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