🎉ETH spot ETF is officially approved!

While celebrating, you may want to ask: After the ETF opens for trading, will it face the same selling pressure as BTC? —— In theory, yes

This article contains 👇
- Grayscale sell-off analysis
- Grayscale GBTC sell-off data review
- Differences between ETH and BTC ETF sell-offs
- Grayscale ETHE holdings and latest fund changes

Similar to the Bitcoin spot ETF, Grayscale Trust Fund ETHE has only inflows and no outflows since its establishment in 2019. After the Ethereum spot ETF is approved, investors may redeem their holdings, causing Grayscale to sell ETH to meet redemption needs; the reasons for redemption may be high management fees (2.5%, currently the highest), arbitrage liquidation, market expectations, etc.

Data Review
After the Bitcoin spot ETF was approved, Grayscale saw an outflow of more than $20 billion in six months, including about $6.5 billion in the first month and about $1.169 billion in the first three trading days, pushing the BTC price down by 15% in a short period of time ($48969 > $41500)

Differences
Perhaps in order to reduce capital outflow or increase competitiveness, Grayscale launched the Ethereum Mini Trust (i.e., the mini version of the ETF), adjusting its funding rate to only 0.12% in the first 12 months (or the first 2 billion US dollars). The original 10% of ETHE assets will be automatically separated into the mini version.

Grayscale ETHE holdings
Grayscale currently holds 2.959 million ETH, with a total value of over 10.3 billion US dollars; trading will officially begin after the US stock market opens at 21:30 Beijing time on July 23. You can track Grayscale's fund changes in Arkham. For monitoring methods, please refer to the Mentougou tutorial.

Grayscale address: https://platform.arkhamintelligence.com/explorer/entity/grayscale

Latest funding changes
Five hours ago, Grayscale deposited 292,000 ETH (worth $1.01 billion, or 10% of ETHE’s current reserves) into Coinbase, which was then transferred to Ethereum Mini Trust.