Bitcoin ETFs see $1.2 billion inflow as CBOE sets Ethereum ETF launch date

bitcoin spot ETFs have accumulated around $1.24 billion in inflows over the past week as spot markets recover.

Preliminary figures Farside investors suggest that Friday, July 19 saw inflows of $384 million, with Fidelity leading the way with inflows of $140 million.

This marks eleven consecutive trading days of positive flow into 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, Fidelity ethereum Fund, Invesco Galaxy ethereum ETF, VanEck ethereum ETF and Franklin ethereum ETF.

<blockquote class="twitter-tweet”>

New CBOE listings…

It's happening.

It's almost time to go. image.twitter.com/V1wCcxYoCH

– Nate Geraci (@NateGeraci) twitter.com/NateGeraci/status/1814395899654631916?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>July 19, 2024

However, the Securities and Exchange Commission has not yet officially signed the S-1 documents for the respective funds.

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

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 firm will allocate 10% of its bitcoin spot ETF assets to the new fund, which will likely have a more competitive fee structure than the 1.5% charged on GBTC.

Additionally, the firm will do the same when its ethereum product becomes a spot ETF. Current ETHE shareholders will receive a proportional distribution of shares in its new Grayscale ethereum Mini Trust (eth) on July 31.

On July 19, Bloomberg ETF analyst James Seyffart said that from a value perspective, “a theoretical person has $1,000 worth of ETHE or GBTC. After the spinoffs happen, there should essentially be $900 in the original fund and $100 in the new mini ETFs.”

<blockquote class="twitter-tweet”>

Make a thread about the situation of twitter.com/Grayscale?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>@GrayscaleThe spin-off of twitter.com/search?q=%24ETHE&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$eth & twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$Ether because I've gotten about a million questions about it. The mechanics will be basically the same for twitter.com/search?q=%24GBTC&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$GBTC & twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$btc spin-off. If you own 1,000 shares of twitter.com/search?q=%24ETHE&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$ethYou should receive 1,000 shares of mini twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$Ether. 1/ photo.twitter.com/Er66mj5L46

—James Seyffart (@JSeyff) twitter.com/JSeyff/status/1814347183522754773?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>July 19, 2024

The exodus?

There are currently 271,793 btc worth around $18.2 billion in Grayscale’s GBTC ETF and $9.2 billion worth of ethereum in its yet-to-be-converted ETHE fund.

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

There have been concerns about a GBTC-like exodus from ETHE when it converts, but the distribution to the more competitive ethereum Mini Trust should alleviate some of the exit pressure.

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