- 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, 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.
Ethereum development FAQs
After the Merge, the Ethereum community is looking at the Sharding upgrade next, which has been slated for sometime later in the year. The development can be summarized in four words, “scalability through more efficient data storage.” The software update will increase the capacity of the blockchain, widening the amount of data that can be stored or accessed. At the same time, all services running atop the Ethereum blockchain will enjoy significantly reduced transaction fees.
A fork is the splitting of a blockchain after developers agree and proceed to implement upgrades. The decision comes after these developers reach a consensus for a software upgrade. The ensuing part will see one part continue with the status as is, while the other one will proceed with new features combined with the former ones. A hard fork basically entails permanent divergence of a new side chain from the original one, while a soft fork is doing the same, only difference being that it is temporary.
EIP-4844 is an improvement proposal for the Ethereum network. The upgrade promises reduced gas fees, which is a valuable offering considering the high transaction cost that continues to daunt crypto players. It has been a long-standing concern for the Ethereum network. The proposal is also referred to as “proto-Danksharding,” with an unmatched ability to increase the speed of transactions on the Ethereum blockchain. At the same time, it helps to reduce the transaction cost as everything becomes decentralized.
Gas token is a new, innovative Ethereum contract where users can tokenize gas on the Ethereum network. This means they can store gas when it is cheap and start to deploy the gas once the market has shifted to the north. The use of Gas token helps to subsidize high gas prices on transactions, meaning investors can do everything from arbitraging decentralized exchanges to buying into initial coin offerings (ICOs) early.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators
Zilliqa price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. Bullish divergence on the RSI and the Awesome Oscillator indicators signal a potential reversal and upward movement in ZIL price in the coming days.
MATIC sets for a rally as Polygon Foundation confirms the migration date
Polygon (MATIC) price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. The Polygon Foundation officially announced on Thursday that September 4 is the migration date for MATIC to POL.
Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry
Bitcoin and Ethereum hold steady above $64,000 and $3,400 as $1.8 billion in options expire on Friday. WazirX hack of $230 million potentially linked to Lazarus Group ushers correction in Shiba Inu, among other assets.
Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?
Bitcoin price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million.
Bitcoin: Will BTC continue its bullish momentum?
Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million. On-chain data indicates oversold conditions for BTC, suggesting a possible market bottom.