If approved, Grayscale's Ethereum Mini Trust will be seeded with Ether from the Grayscale Ethereum Trust.
On April 23, Grayscale Investments, the world's largest cryptocurrency asset management company, filed for its second prospective Spot Ether exchange-traded fund (ETF).
Called Grayscale Ethereum Mini Trust, was suggested The fund is a spin-off from the Grayscale Ethereum Trust (ETHE), which filed for conversion into a Spot Ethereum ETF in August.
Minitrust will trade under the ticker ETH and will be seeded with the assets currently backing ETHE. Existing his ETHE shareholders will also receive her ETH shares on a pro rata basis to keep the level of the investor's existing exposure to Ethereum constant.
Minitrust differs from ETHE in that it is aimed at long-term investors and will offer lower fees to shareholders.
“The approval of the Grayscale Ethereum Mini Trust is a net benefit for existing ETHE shareholders who stand to maintain similar exposure to Ethereum with the added benefit of lower average fees for both products. “We believe this will be a positive outcome for the company,” said Craig Sahm, Grayscale's chief legal officer.
If approved, Grayscale Ethereum Mini Trust will be traded on the NYSE Arca exchange.
Grayscale also filed for a mini-spot Bitcoin ETF in March, seeded with 10% of the stock of GBTC, a spot Bitcoin ETF.
SEC postpones verdict on Ethereum ETF
The Ethereum community is currently waiting with bated breath for May 23rd, which will be a critical day for Ether ETF applicants.
May 23rd marks the legal deadline of 240 days after Volatility Shares filed its first Spot Ether application in August (soon after that, other companies from Bitwise, Grayscale, VanEck, Roundhill, and Proshares applications continued). The maximum allowed period is 240 days. For the SEC to issue a verdict on the application.
Analysts have long pointed to this date as an important deadline for potential Spot Ethereum ETFs, similar to the recently approved Spot Bitcoin ETF's final deadline of January 10th.
On April 23, the SEC again delayed filing a decision on Spot Ether ETF applications from Grayscale, BlackRock, and Franklin Templeton. Those deadlines have been extended until June 23, but Bloomberg ETF analyst James Seifert said: I reconfirmed He said via tweet that the SEC's May 23 decision remains the main focus regarding the Spot Ether ETF.
CoinShares reports withdrawal of funds from crypto fund
Meanwhile, the Spot Bitcoin ETF suffered heavy outflows last week, losing $204.6 million, marking its second consecutive week of negative performance. According to Sosovalue.
Data compiled by Coinshares shows that crypto exchange traded products (ETPs) lost a combined $206 million, with Bitcoin ETFs accounting for the bulk of the outflows. The share of ETFs in total Bitcoin trading volume also fell to 28% from 55% the previous week.
James Butterfill, head of research at CoinShares, said the bearish momentum is due to expectations that the US Federal Reserve will continue to keep interest rates high.
“The data suggests that ETP/ETF investor appetite continues to decline, likely due to expectations that the Fed will keep interest rates high for longer than expected,” Butterfill said. .
However, BlackRock's IBIT ETF bucked the downtrend. post There were 69 consecutive days of inflows leading up to Bitcoin's halving.
