Tag: Ethereum News

The total trading volume of the spot ETH ETFs reached $240.58 million, compared to its $155.91 million record on August 14.

Spot Ethereum Exchange-Traded Funds (ETFs) have recorded outflows totaling $39 million, marking the end of a three-day streak of consistent inflows.  

According to data from crypto research platform SosoValue, the Grayscale Ethereum Trust (ETHE) saw continued outflows, with $42.52 million leaving the fund. It was the only spot ether ETF to record outflows on Thursday. 

The Grayscale Ethereum Mini Trust (ETH), the second-largest spot ether ETF by net assets, also recorded no inflows, following a modest net inflow of $2.26 million on August 14.  

Fidelity’s FETH saw net inflows of $2.54 million, while BlackRock’s ETHA recorded $770,350 into the fund. The remaining ETFs reported no changes in flows.  

On August 15, the total trading volume of the nine ETFs surged to $240.58 million, significantly exceeding the $155.91 million recorded on the previous day and the $190.76 million on August 13.     

Spot Bitcoin ETFs Hit $11.11M Inflows 

Unlike spot ETH ETFs, the 12 spot Bitcoin ETFs in the U.S. also saw modest inflows of $11.11 million on Thursday, a reversal from the net outflows of $81.36 million recorded the previous day. 

BlackRock’s IBIT, the largest spot bitcoin ETF, recorded zero inflows on Thursday after reporting net inflows of $2.68 million on Wednesday and $34.55 million on Tuesday.  

Grayscale’s GBTC was the only ETF to record outflows, with $25.03 million exiting the fund, pushing its outflow streak to 11 consecutive days.  

Fidelity’s FBTC led the day with the highest inflows, totaling $16.25 million. The Grayscale Bitcoin Mini Trust came next, attracting $13.66 million in net inflows, while Bitwise’s BITB saw $6.23 million added to its fund. 

The total trading volume of these spot Bitcoin ETFs reached $1.79 billion on Thursday, up from $1.3 billion on Wednesday. 

The daily amount of ETH burned on the Ethereum network has reached its lowest level in the past few years.

The Ethereum network has witnessed a significant reduction in its burn rate as gas fees have plummeted to an unprecedented low of 2 gwei. The decline in base gas fees marks some of the lowest levels observed in recent years. This represents a 98% drop from the year-to-date high of 83.1 gwei reached early this year in March. 

Gwei is the most commonly used ether unit because Ethereum transaction fees are priced, making it easier to refer to.

On August 12, only 210 ETH were burned, a record low for the year. This has led to an increase in the network’s inflation rate, with approximately 2,000 ETH added to the supply.

The Introduction of EIP-1559

The implementation of (EIP-1559), known as the London hard fork in August 2021, introduced a mechanism where the system burns the base fee per transaction, reducing the overall ETH supply when network activity is high. The recent low fees mean less ETH burned,  influencing the economic space of Ethereum. 

This reduction in gas fees is also attributed to a growing shift of users to Layer 2 scaling solutions and the implementation of blob transactions from the Dencun upgrade in March, which have contributed to lowering costs on Layer 2 networks.    

According to data from analytics and research platform L2BEAT, Layer 2 activity has skyrocketed. Base alone handled more than 109 million transactions in the last 30 days, compared to 33 million on Ethereum’s mainnet.    

Ethereum Needs to Increase Layer 1 Activity

In light of the inflationary trend, Gnosis founder Martin Köppelmann has proposed a temporary increase in the gas limit.  

Köppelmann also said that Ethereum needs to increase layer 1 activity. Although raising the gas limit may seem counterintuitive, it could be a strategic move given the current low fees. 

During the recent crash that rocked the entire crypto market, ETH dumped more than 33%, with huge sales coming from Jump Crypto.  

Jump Crypto, the cryptocurrency arm of Jump Trading, has been on an extended selling spree, offloading over 83,000 ether (ETH) in the past 12 days. The trend continued into this week, as the company unstaked over $400 million worth of ETH and transferred it to exchange accounts for further selling. The U.S. Commodity Futures Trading Commission (CFTC) is reportedly investigating these activities, adding to the apprehension about the future of Ethereum’s price.

Jump Crypto Unstakes Over 120,000 ETH 

According to data from onchain analysis platform Arkham Intelligence, Jump Crypto has been significantly active with its ETH holdings within the past few days. Since July 24, the company has sold over 83,000 wstETH worth $377 million. 

Following the approval of Spot Ethereum Exchange-Traded Funds (ETF), ETH has been on the downside as the ETFs have recorded massive outflows. But things became gloomy for ether on Monday as the entire crypto market took a nosedive with major assets losing significant percent of their values. ETH went as low as $2,100 for the first time since Feburary 2024. 

The crashed coincided with Jump Crypto unstaking and selling 120,695 wstETH, valued at $290 million. The tokens were unstaked at the Ethereum redeem address and moved to Binance, Coinbase, Bybit, and other centralized exchange addresses.

Lookonchain noted that the recently unstaked wstETH was recovered from a year-old Wormhole exploit. The exploiter moved the stolen tokens through various dApps on the Ethereum network, but Jump Crypto and Oasis secured the stolen funds and transferred them to a new wallet. 

Jump Crypto Under Probe

Jump Crypto is currently under the radar of US regulators. According to recent reports, the CFTC is examining the firm operations in the crypto space. After the investigation started, Kanav Kariya stepped down as the company’s President. However, the probe has not caught any evidence of wrongdoing by the crypto trading firm, and the decision to charge the company is still unknown.

Despite the significant reduction in its ETH portfolio, Jump Crypto still holds over 37,600 ETH, valued at around $100 million at current prices.

The massive ETH sales from Jump Crypto attracted the attention of many investors, who think they are significantly affecting the asset’s price. Some speculators, including BitMEX’s founder Arthur Hayes, have associated it with the recent dip in the ETH price. 

Speaking on the matter, analysts from digital assets firm QCP Group said:

“The immediate trigger in crypto seems to have been aggressive selling from Jump Trading and Paradigm VC. The move was probably exacerbated by market makers scrambling to cut short gamma as front-end ETH volumes spiked more than 30% to 120%.”

Grayscale Ethereum Trust lost $811 million in its first two trading days, surpassing the combined inflows from other Ether ETFs. 

Following Ether Exchange-Traded Funds (ETF) approval on Monday, the eight issuers launched their products, which began trading on Tuesday. Grayscale launched two ETFs with the tickers ETHE and ETH. Seven launched Ether ETFs have concluded their first two trading days on the green side. However, the massive outflows from Grayscale ETHE have a ripple effect, impacting the entire Ether ETF market. 

Ether ETFs Outflows $133M 

On their first market day, United States Ether ETFs saw a significant inflow of $106.6 million. However, the second day saw a substantial outflow of $133.3 million, primarily due to heavy Grayscale Ethereum Trust ETHE sales, underscoring its influence on the Ether ETF market. 

Grayscale’s ETHE dominated the bearish market on Tuesday, selling off about $326.9 million. While other ETFs experienced inflows, the outflow from Grayscale’s ETHE exceeded their inflows. Fidelity’s FETH saw the highest inflow of about $74.5 million, while Bitwise’s ETHW took in $29.6 million. Four approved Ether ETFs collectively took in $43.6 million, highlighting the stark contrast in market dynamics.

Unlike the ETHE, Grayscale’s Mini Ethereum Trust, ETH, took in $45.9 million, and 21Shares’ CETH didn’t record any market movement on its second trading day.  According to data from Farside Investors, the entire Ether ETF market is on the red side, losing $26.7 million. 

Like Grayscale’s Bitcoin Trust (GBTC), Grayscale’s ETHE has recorded outflows within its starting market days due to high maintenance fees. Grayscale charges its investors a 2.50% maintenance fee, while other ETFs’ charges are within the 0.20 and 0.25% range. It has sold $811 million, even more than GBTC outflowed within its first two market days.

Considering the possible effects of its high fee charges, Grayscale acquired more Ethereum to back its ETFs. According to Grayscale’s website, despite the massive outflows, Grayscale still holds over 2.4 million ETH worth $7.9 billion.

Ethereum Price Action

Following the U.S Securities and Exchange Commission (SEC) Ether ETF approval, the market for Ethereum has not been bullish. It has plummeted by more than 11%, from $3540 on Monday to $3130 earlier today. At press time, Ethereum still trades below the $3200 mark.   

The transfer occurred one day before the first US spot Ether ETFs are set to begin trading on July 23. 

Leading crypto asset manager Grayscale Investments has transferred $1 billion in ETH to crypto giant Coinbase before the launch of spot Ether exchange-traded funds (ETFs) in the United States.  

According to data provider iChaininfo, about 10% of the 292,000 Ether was moved from Coinbase’s hot wallet to the Grayscale Mini Trust address. 

The transaction occurred a day before US spot Ether ETFs launch, which will commence trading on July 23. The billion-dollar transfer implies that Grayscale is setting aside funds in advance for the ETF launch.   

Coinbase will act as the custodian for eight recently approved Ether ETFs. The platform already serves as the custodian for 10 out of the 11 existing spot Bitcoin ETFs.   

SEC Grants Final Regulatory Approval to Ether ETFs 

On July 22, the US Securities and Exchange Commission (SEC) gave the green light to the final S-1 registration statements required for the ETFs to debut on stock markets.

The approved issuers of the Ether ETFs are BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy.

Grayscale’s Ethereum Trust will be listed on the New York Stock Exchange, whereas BlackRock’s iShares Ethereum Trust will be traded on the Nasdaq.

According to Bloomberg ETF analyst James Seyffart, Grayscale’s fund has the lowest waiver fee of 0.15% among the potential Ether ETF issuers.    

Institutional Crypto Interest on the Rise 

Commenting on the latest development, Eugene Cheung, head of institutions at Bybit, noted that institutional investors were more optimistic about Ether than retail investors a week before the ETF launch.  

Data shows that institutional investors increased their Ether holdings significantly, from 6.54% to 14.29%. On the other hand, retail investor allocation grew from 7.4% to 9.52% in the same timeframe, indicating a positive outlook on ETH price. 

ETH Price Prediction  

With spot ether ETFs set to start trading soon, experts believe the cryptocurrency is poised for significant gains in the coming months. 

For instance, Matt Hougan, Bitwise Asset Management’s Chief Investment Officer (CIO), thinks that launching the ETF would propel ETH prices to new levels, exceeding $5,000.  

At the time of writing, ETH is currently trading above $3400, up 0.96% in the last 24 hours.

After the approval, Bitwise announced that it would donate 10% of the profits from its spot Ether ETF to Ethereum open-source developers.

The United States Securities and Exchange Commission (SEC) has officially approved the S-1 Applications of Spot Ethereum Exchange-Trade Funds (ETF) Issuers. This approval, which includes BlackRock’s Ethereum Trust Fund (ETHA), Fidelity’s Advantage Ether (FETH), and seven other ETFs, is expected to significantly impact the industry by attracting massive inflows. 

The approval came a week after Nate Geraci, CEO of ETF Institute, predicted that this would be the week of Ether ETF approval. Two anonymous SEC officials revealed that the agency responded favorably to the submitted applications. Additionally, the SEC greenlighted the filings by requesting final S-1 applications from the ETF issuers. 

Notably, Grayscale charges the highest and lowest fees for Ethereum ETFs. Spot Bitcoin and Ethereum ETFs’ approval boosts confidence in the filing for and approving other crypto ETFs.

Spot Ether ETFs to Begin Trading Today

On Monday, the SEC approved the final S-1 filings for spot ether ETFs. Following the approval, Ethereum ETFs will be launched for trading on stock exchanges like the New York Stock Exchange (NYSE), Chicago Board Options Exchange, and Nasdaq.

The SEC has approved nine Ethereum funds to begin trading by 9:30 on Tuesday, July 23rd. Blackrock’s Ethereum Trust Fund (ETHA), Fidelity’s Advantage Ether (FETH), Franklin’s Ethereum Fund (EZET),  21Shares Core Ethereum ETF (CETH), VanEck Ethereum ETF (ETHV), Invesco Galaxy Ethereum ETF (QETH), Bitwise Ethereum Fund (ETHW), and two ETFs for Grayscale, Grayscale Ethereum Trust ETF (ETHE) and the Grayscale Mini Ethereum Fund (ETH), were approved.

The BlackRock Ethereum Trust will be listed on the Nasdaq, while the Bitwise and Grayscale Ethereum Trust will trade on the NYSE. Bitwise has announced that 10% of the profits it makes from its Ether ETF will be dedicated to Ethereum open-source developers.  

BlackRock, Fidelity, and Invesco charge a 0.25% ETF maintenance fee. 21Shares charges 0.21%, while Bitwise and Vaneck charge 0.2%. Franklin charges 0.19%, the same with its Bitcoin ETF. As with the U.S.-approved bitcoin ETFs, Grayscale stands out with a 2.50% maintenance fee. However, its mini ETF is charged at 0.15%.

The approval of Spot Bitcoin and Ethereum ETF has significantly impacted the crypto community, paving the way for other crypto ETFs. VanEck and 21Shares have filed for a Solana ETF, awaiting further green light from the SEC. 

The Bitwise executive believes that if the Ethereum ETFs reach the expected level of inflow, it is difficult to see ether not challenging its previous record. 

Matt Hougan, Bitwise Asset Management’s Chief Investment Officer (CIO), has predicted that launching the Ethereum Exchange-Traded Fund (ETF) will propel ether (ETH) prices to new levels, exceeding $5,000.  

Hougan noted that the first few weeks could be “choppy,” with funds possibly moving out of the $11 billion Grayscale Ethereum Trust (ETHE) following its conversion to a spot ETF.   

“But by year-end, I’m confident the new highs will be in. And if flows are stronger than many market commentators expect, the price could be much higher still,” he said. 

According to crypto news media CoinTab, the spot Ethereum ETFs will likely start trading on July 23. Recall that on May 23, the United States Securities and Exchange Commission (SEC) approved eight 19b-4 applications for spot Ethereum ETFs submitted by Bitwise, BlackRock, Fidelity, VanEck, Ark Invest, Invesco, Franklin Templeton, and Grayscale. 

ETFs to Have a Significant Impact on ETH: Hougan

Hougan expects ETH to react similarly to how BTC reacted when spot Bitcoin ETFs started trading. According to him, since the launch of spot Bitcoin ETFs, the funds have collectively acquired 263,965 BTC, which is more than twice the 129,281 BTC mined during the same period.

The Bitwise executive noted that BTC has surged by approximately 40% since the ETFs were approved on January 11. He expects the impact on ether to be even greater.

Hougan had earlier predicted that spot Ethereum ETFs would draw in $15 billion in net inflows within their first 18 months, a slower pace compared to Bitcoin ETFs, which achieved this net inflow milestone in only five months of trading. 

“Even if Ethereum’s inflation rate rises above 0%, I do not expect significant selling pressure from stakers,” he said. 

The Bitwise CIO believes that if spot Ethereum ETFs achieve the anticipated level of inflows, “it’s hard to imagine ether not challenging its old record.” 

ETH is currently trading at $3,464.33, according to CryptocurrenciesToWatch, with a market cap of 414.32 billion as of the time of writing.

The SEC’s recent instructions to Ethereum ETF issuers mark a significant step in the regulatory process.

Industry anticipation is high, as Nate Geraci, co-founder of ETF Institute, predicts this week will be the Ether Exchange-Traded Funds (ETF) approval week. The United States Securities and Exchange Commission (SEC) has issued final instructions to Ether ETF applicant companies to allow them to launch the ETFs by Tuesday. This development is a significant milestone in integrating crypto-investments into the traditional financial market.

Ether ETF Trading to Start on Tuesday

On May 23, the SEC allowed issuers to propose rule changes through their 19-b forms, a crucial step in the regulatory process. The next step for asset managers is to secure approval for their initial securities registration through S-1 forms.  

The asset managers have not held back on their applications. These firms submitted updated S-1 forms last week and eagerly await a response from the SEC. Aside from VanEck and Invesco Galaxy, other ETF companies have not revealed management fees and other vital details about how their funds will function.

On Monday, SEC officials provided positive feedback to prospective issuers, stating that the agency has no negative comments on the submitted S-1 forms. They further instructed that the final versions must be submitted by Wednesday and revealed that the ETFs can be listed on exchanges starting Tuesday, July 23.

Providing further information, a second official revealed that the funds will be officially approved on Monday and start trading the next day, just as they did with spot bitcoin ETF approvals in January.

According to reports, the U.S. SEC has given “preliminary approval” to at least three of the eight asset managers filing for a spot ethereum ETF that will begin trading next Tuesday.

As revealed by the anonymous SEC officials, BlackRock, VanEck, and Franklin Templeton are among the eight asset managers whose applications are most likely to be approved by the following Monday, July 22. Trading in the products is expected to begin the next day.

Following the spread of this information, ethereum (ETH) has risen. Investors have turned attention to the second-largest cryptocurrency, and they now see it in a more positive light. At press time, ETH is above the $3400 mark and has formed many bullish candles, indicating a further uptrend.