The post Grayscale Shifts $1 Billion in Ethereum to Coinbase Ahead of US ETF Trading Debut appeared on BitcoinEthereumNews.com.

We do the research, you get the alpha! Get exclusive reports and access to key insights on airdrops, NFTs, and more! Subscribe now to Alpha Reports and up your game! Go to Alpha Reports Crypto asset manager Grayscale has transferred a hefty sum of Ethereum to Coinbase Prime as exchange-traded funds (ETFs) associated with the asset gear up for a trading debut in the U.S. this week. Grayscale’s transaction of $1.01 billion to Coinbase Prime on Wednesday prompted market participants to suggest Grayscale might be preparing for a sell-off to reinvest in another crypto, such as Solana. Jon Campagna, managing partner at crypto hedge fund Nexyst Digital and formerly associated with Coinfund and Blackrock, dismissed these claims in a Tuesday post on X, saying Grayscale is unlikely to reallocate its Ethereum holdings. It comes as Grayscale tipped 10% of its Grayscale Ethereum Trust (ETHE) holdings into its separate Ethereum ETF (ETH) on July 18, Campagna explained. The new fund is expected to become active on Wednesday, with ETHE holders receiving their proportional ETF positions. To facilitate the move, the asset manager transferred $1 billion, or 10% of their $10 billion AUM in ETHE, to Coinbase Prime, as announced a week earlier by Grayscale, Campagna wrote. “What will be interesting is to see the outflows from ETHE as they refuse to lower their … fee,” Campagna said. “My guess is those outflows get recycled into inflows into the lower-cost ETFs, like Grayscale’s own 15 basis point fee ETH ticker. Brilliant move by them as they quasi-guarantee more assets stay in-house this way.” “Grayscale is not lowering at all,” Eric Balchunas, an ETF analyst at Bloomberg, wrote in a post to X on July 18. “This means they are ten times higher than competition.” Grayscale is expected to maintain a 2.5% fee on…

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Filed under: News - @ July 24, 2024 9:24 am