Grayscale Transfers $1 Billion in ETH Before the Launch of Ethereum ETF

SEC approved Grayscale’s Ethereum spot ETF application earlier in July. The firm launched the first spot Ether ETF in the United States on 23rd July. On this account, Grayscale sent a $1 billion ETF to Coinbase on 22nd July as part of the listing process for the spot Ethereum ETFs as per blockchain statistics.

Grayscale Mini Trust

After the transfer, around 10% of 292,000 Ethereum were sent from Coinbase wallet to Grayscale Mini Trust.

This transfer took place one day before the official launch of the first-ever Ethereum spot ETF listing. These transactions indicated that Grayscale was pre-seeding funds in order to finalize the ETF listing process.

Coinbase exchange has been appointed as custodian for 8 out of 9 Ethereum ETFs. The exchange platform is also operating as a custodian services provider for 10 out of 11 spot Bitcoin ETFs listed in the country.

As of 22nd July, the Securities and Exchange Commission (SEC) approved S-1 registration statement for ETFs to launch the new product on stock exchanges. The now-regulated Ethereum ETFs are issued by top asset management firms namely BlackRock, Fidelity, Bitwise, Franklin Templeton, Invesco Galaxy, 21Shares, and VanEck.

Grayscale to List Ethereum Trust on NYSE Arca

Grayscale Ethereum Trust is set to get a listing at New York stock exchange Arca and BlackRock’s iShares Ethereum Trust will be listed at Nasdaq.

Bloomberg analyst James Seyffart ETF analyst at Bloomberg noticed that Grayscale has retained the lowest waver fee of 0.15%. For the first 6 months, trading fees for Grayscale Ethereum ETF are set at 0%.

At the same time, analysts have retained that institutional investors are more bullish on ETH in comparison to the retail sector. The remarks come from Bybit head of institutions Eugene Cheung. he noticed that the latest reports indicated that commercial investors are bullish on Ethereum more than retail.

When ETF was first introduced, there was some skepticism among institutional investors. On this account, the ETH went from 6.54% to 14.29% as per data quoted by Cheung.

For the same duration, retail investment inflows reached 9.52% from 7.4%, which was indicative of the cautiously optimistic approach on the Ethereum price. The growth in Ethereum ETFs could assist ETF prices to double in the upcoming quarters as per the executive.

He further retained that the long-term price expectation for ETH is to double in the upcoming 18 months. It has the potential to allow investors to undertake an excellent risk/reward ratio. Ethereum is 28% down from its ATH of $4800 since November 2021.

Ethereum Price Analysis

Ethereum is set to see a massive price action following spot ETF momentum. Investors anticipated the same effect on ETH as the price hike of Bitcoin following listings of spot Bitcoin ETFs. Investors have retained that there are two major zones to purchase as per a pseudonymous trader on social media.

The trader noted that the existing buy zone was around $3.2K and below and noted that the $3,097 buy zone had already passed. The analyst further indicated that Ethereum has the potential to regain $4000 in the upcoming weeks.

Data projections from CoinMarketCap indicated that Ethereum prices were down by 7.68% during the 24-hour duration trading at $3,209. Since launch Ethereum ETFs have reported $106 million in net inflows.

Futures traders have expected a larger price decline after the launch of Ethereum ETFs. The price decline took place after the liquidation of $42.53 million in short and $2 million in longs as per CoinGlass data. The same trend also took place in Bitcoin with spot Bitcoin ETF price jumping from $40,000 to $70,000 as per analyst Micheal van de Poppe.

The analyst also noticed that it was probable that Ethereum prices could retrace previous ATHs. He projected a probability of up to $7500 noting that short-term volatility is not ruled out. The same observation was reiterated by Swyftx analyst Pav Hundal who predicted the nearest price goal for ETH in November 2021 high of $4,890.