Spot Bitcoin ETFs Inflows Surge
Spot Bitcoin ETFs have seen a significant increase in inflows, totaling around $1.24 billion over the past week. This surge in inflows comes as spot markets show signs of recovery, with institutional investors showing renewed interest in these investment products.
Friday Inflows Break Records
According to preliminary data from Farside Investors, Friday, July 19, saw a record-breaking inflow of $384 million into spot Bitcoin ETFs. Fidelity led the pack with $140 million in inflows, marking a positive trend in institutional investment.
Positive Flow Continues
This marks the eleventh consecutive trading day with a positive flow to spot Bitcoin ETFs, indicating growing confidence among investors in the cryptocurrency market. Even Grayscale’s GBTC spot ETF saw a $20 million inflow on Friday, breaking a week-long streak of negative flows.
Ethereum ETFs Set to Launch
In other news, the CBOE announced that five spot Ethereum ETFs will begin trading on July 23, pending regulatory approval. The new products include the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF, offering investors more options in the growing cryptocurrency market.
Grayscale Plans to Launch New Bitcoin Mini Trust
Grayscale recently announced its intention to launch a new ETF, the Grayscale Bitcoin Mini Trust (BTC). This move comes as part of the firm’s strategy to compete for market share by offering a more competitive fee structure. The firm will allocate 10% of its spot Bitcoin ETF assets to the new fund, which is expected to have lower fees than its flagship Grayscale Bitcoin Trust (GBTC).
Grayscale Ethereum Mini Trust to be Launched Soon
In addition to the Bitcoin Mini Trust, Grayscale also plans to convert its Ethereum product into a spot ETF. Existing ETHE shareholders will receive shares in the new Grayscale Ethereum Mini Trust (ETH) on July 31. This move is aimed at providing investors with a more cost-effective option for investing in Ethereum.
Market Response to Grayscale’s Spinoff Announcement
Analysts have been closely monitoring the impact of Grayscale’s spinoff announcement on the market. Bloomberg ETF analyst James Seyffart noted that investors holding ETHE or GBTC may see a reduction in the value of their holdings after the spinoffs. However, the move is expected to benefit investors in the long run by providing them with more cost-effective investment options.
The Transition from ETHE to Ethereum Mini Trust
Grayscale’s spinoff for $ETHE & $ETH has been a topic of discussion lately, with many curious about the mechanics of the transition. If you hold shares of $ETHE, you can expect to receive shares of mini $ETH in return. The same process will apply to $GBTC & $BTC spinoff as well.
Grayscale’s Crypto Funds
Currently, Grayscale’s GBTC ETF holds 271,793 BTC valued at approximately $18.2 billion, while its ETHE fund holds $9.2 billion in Ethereum. These crypto funds have been in operation for a long time, with GBTC launching in 2013 and ETHE in 2017.
Concerns and Solutions
There have been concerns about a potential exodus from ETHE similar to what happened with GBTC. However, the transition to the more competitive Ethereum Mini Trust is expected to ease some of the outflow pressure and provide a smoother transition for investors.
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