Bitcoin ETFs See $1.2B Inflow as CBOE Sets Ethereum ETF Launch Date

Spot Bitcoin ETFs have racked up about $1.24 billion in inflows over the past week as spot markets recover.

Preliminary figures from Farside Investors suggest inflows of $384 million were recorded on Friday, July 19, with Fidelity leading the pack with inflows of $140 million.

This represents eleven consecutive trading days with a positive flow of these institutional investment products. Even Grayscale saw a $20 million inflow into its GBTC spot ETF on Friday, the first day of positive flow for the fund in a week.

Ethereum ETF Dates

On July 19, the CBOE announced that five spot Ethereum ETFs will begin trading on July 23, “pending regulatory effectiveness.”

The five products that will begin trading next week are the 21Shares Core Ethereum ETF, the Fidelity Ethereum Fund, the Invesco Galaxy Ethereum ETF, the VanEck Ethereum ETF, and the Franklin Ethereum ETF.

New listings from Cboe…

It’s happening

Time is almost up. pic.twitter.com/V1wCcxYoCH

— Nate Geraci (@NateGeraci) July 19, 2024

However, the Securities and Exchange Commission has yet to officially sign off on the S-1 filings for the respective funds.

Most issuers have stated that they will waive or temporarily discount fees to compete for market share, CryptoPotato reports.

Additionally, on July 19, Grayscale announced plans to spin off a portion of its flagship Grayscale Bitcoin Trust (GBTC) into a new ETF, the Grayscale Bitcoin Mini Trust (BTC).

The company will allocate 10% of its Bitcoin ETF cash assets to the new fund, which is likely to have a more competitive fee structure than the 1.5% charged by GBTC.

Additionally, the company will do the same when its Ethereum product becomes a spot ETF. Existing ETHE shareholders will receive a proportional distribution of shares of their new Grayscale Ethereum Mini Trust (ETH) on July 31st.

On July 19, Bloomberg ETF analyst James Seyffart said that from a value perspective, “a theoretical person has $1,000 in ETHE or GBTC. Once the splits happen, it should basically be $900 to the original fund and $100 to the new mini ETFs.”

Making a thread about the situation for @grayscalespinoff of $ETHE & $ETH because I’ve gotten a million questions about it. The mechanics will be essentially the same $GBTC & $BTC spin-off If you own 1,000 shares of $ETHEyou should receive 1000 shares of mini $ETH. 1/ pic.twitter.com/Er66mj5L46

— James Seyffart (@JSeyff) July 19, 2024

ETHE Exodus?

There is currently 271,793 BTC worth about $18.2 billion in Grayscale’s GBTC ETF and $9.2 billion in Ethereum in its yet-to-be-converted ETHE fund.

Grayscale’s crypto funds are among the oldest in the industry, with GBTC launched in 2013 and ETHE in 2017.

There has been concern of a similar exodus to GBTC from ETHE when converted, but the distribution to the more competitive Ethereum Mini Trust should ease some of the exit pressure.

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