Bitcoin ETFs have been experiencing a significant increase in inflows, with a total of $1.24 billion coming in over the past week. Farside Investors reported that on Friday, July 19th, there was an inflow of $384 million, with Fidelity leading the way with $140 million. This positive trend has continued for eleven consecutive trading days, with even Grayscale’s spot ETF seeing a $20 million inflow on Friday.
The CBOE recently announced that five spot Ethereum ETFs will be launching on July 23rd, pending regulatory approval. These new products include the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF. However, the Security and Exchange Commission has yet to finalize the S-1 documents for these funds.
In response to the new listings, most issuers have indicated that they will waive or discount fees temporarily to attract more investors. Additionally, Grayscale revealed plans to spin off a portion of its Grayscale Bitcoin Trust into a new ETF called the Grayscale Bitcoin Mini Trust. This move is expected to offer a more competitive fee structure than the existing GBTC.
Furthermore, Grayscale will also be converting its Ethereum product into a spot ETF, with existing shareholders receiving shares in the new Grayscale Ethereum Mini Trust on July 31st. Analysts expect this transition to provide a more favorable investment option for shareholders.
Despite concerns of a potential exodus from Grayscale’s Ethereum fund once it is converted, the introduction of the more competitive Ethereum Mini Trust is expected to alleviate some of the outflow pressure. Grayscale’s crypto funds, including GBTC and ETHE, have been in operation for several years and are considered among the longest-running in the industry.
Overall, the recent developments in the ETF market, particularly with the launch of Ethereum ETFs and the spinoff of Grayscale’s Bitcoin Trust, indicate a growing interest in cryptocurrency investments among institutional investors. This trend could potentially lead to further growth and diversification in the digital asset market in the coming months.