Institutions anticipate potential Tuesday Ethereum ETF launch after making strategic moves
|- Grayscale lowered its Ethereum Mini Trust fees to 0.15% in a bid to reduce potential outflows from ETHE when ETH ETFs go live.
- Galaxy Digital increased its staked Ethereum assets to $3.3 billion after acquiring CryptoManufaktur, reveals CoinDesk.
- Bull flag strengthens predictions of ETH rallying above key resistance.
Ethereum (ETH) is up over 3% on Friday, following moves from institutions and investors ahead of a potential spot ETH ETF launch on July 23.
Daily digest market movers: Institutions and Investors prepare ahead of ETH ETF launch
Ethereum has been one of the top trending digital assets this week following rumors of the Securities and Exchange Commission (SEC) giving the final approval for ETH ETFs to launch on Tuesday.
With recent developments, institutional and retail investors are making strategic moves ahead of the launch. Here are the latest news surrounding the largest altcoin:
- Recent movements from asset managers suggest Bloomberg analyst Eric Balchunas was right with his July 23 (Tuesday) call for spot ETH ETFs to go live. In a recent SEC filing, Grayscale anticipates July 23 as the trading date for its Ethereum ETF. Bitwise is also organizing a virtual round table discussion on July 23 to answer all questions related to its Ethereum ETF.
- Following criticism from several crypto community members concerning its 2.5% Grayscale Ethereum Trust fees, the asset manager lowered fees for its Ethereum Mini Trust from 0.25% to 0.15%, making it the cheapest ETH ETF product. Upon launch, this could reduce outflows for Grayscale Ethereum Trust and boost overall net inflows for ETH ETFs.
Doing a thread on the situation for @Grayscale's spinoff for $ETHE & $ETH because I've gotten about a million questions on it. The mechanics will be essentially the same for $GBTC & $BTC spinoff. If you own 1,000 shares of $ETHE, you should receive 1,000 shares of mini $ETH. 1/ pic.twitter.com/Er66mj5L46
— James Seyffart (@JSeyff) July 19, 2024Doing a thread on the situation for @Grayscale's spinoff for $ETHE & $ETH because I've gotten about a million questions on it. The mechanics will be essentially the same for $GBTC & $BTC spinoff. If you own 1,000 shares of $ETHE, you should receive 1,000 shares of mini $ETH. 1/ pic.twitter.com/Er66mj5L46
— James Seyffart (@JSeyff) July 19, 2024
Grayscale had earlier disclosed that 10% of the holdings of its Ethereum Trust will be distributed to the Ethereum Mini Trust. Meanwhile, Grayscale also conducted a survey showing that 39% of millennials were interested in Ethereum ETFs.
- According to CoinDesk, crypto firm Galaxy Digital expanded its staked Ethereum assets by 43% after acquiring the assets of blockchain node operator CryptoManufaktur (CMF) LLC. The deal would see CMF's $1 billion worth of staked ETH come under Galaxy Digital, increasing its holdings to $3.3 billion.
- With the potential launch of ETH ETFs, IntoTheBlock data shows that investors have withdrawn over $126 million worth of ETH from exchanges this week in anticipation of a potential bull run. Bitwise CIO Matt Hougan had earlier predicted that the launch of ETH ETFs could catapult Ethereum to a new all-time high of about $5,000.
ETH technical analysis: Ethereum's bull flag strengthens rally thesis
Ethereum is trading around $3,500, up 3.4% on the day. ETH traders have seen $27.35 million worth of liquidations in the past 24 hours, with long and short liquidations accounting for $15.24 million and $12.11 million, respectively.
ETH appears to be taking the shape of a bull flag, as seen in the chart below. With ETH ETFs slated for a potential launch on Tuesday, ETH could rally above the $3,977 resistance, which it has failed to overcome since descending from a yearly high seen in March.
ETH/USDT 8-hour chart
A successful move above this level could see ETH flip its yearly high of $4,093 to set a new all-time high around the $5,627 price level.
ETH could decline briefly to $3,364 to liquidate $40.59 million worth of longs before rebounding.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
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