A Grayscale executive highlighted that these products will offer traditional investors exposure to an asset with the potential to revolutionize the financial system.
Digital asset manager Grayscale has announced that its two spot Ether exchange–traded funds (ETFs) have begun trading on the NYSE Arca, marking a significant milestone for both its investors and the broader ETF market.
This launch follows the United States Securities and Exchange Commission (SEC) granting final approval for spot Ether ETFs, enabling several issuers to start trading their products. On July 22, Bloomberg analyst James Seyffart noted that the Grayscale Ethereum Trust (ETHE) had not yet received official effective documents from the SEC but expected them on the morning trading commenced.
Currently, ETHE is the world’s largest Ether–based exchange–traded product, holding $9.19 billion worth of ETH. ETHE will charge investors a 2.5% management fee.
Grayscale’s second product, the Grayscale Ethereum Mini Trust (ETH), is waiving fees for the first six months or until it reaches $2 billion in net assets under management. Once either threshold is met, a 0.15% fee will be applied, making it the most cost-effective spot Ether ETF available in the US.
“ETH and ETHE will allow investors to invest in Ethereum’s potential to create markets, transform financial systems, utilize decentralized finance (DeFi), and drive innovation through the trusted ETP wrapper — without the need to buy, store, or manage Ethereum directly,” said John Hoffman, Grayscale’s managing director, in a statement sent to Cointelegraph.
In addition to Grayscale, Ether ETFs from BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy were also approved to begin trading on Tuesday, July 23.
Grayscale Transfers $1 Billion Worth of Ether to Coinbase Following ETF Approval
On Monday, July 22, Grayscale transferred over $1 billion worth of ETH to Coinbase in preparation for its ETFs’ launch. The transfer included 292,263 Ether, valued at just over $1.01 billion, which was the exact amount specified for transfer from ETHE to its Ethereum Mini Trust in a July 18 filing.
Summary Review: The launch of Grayscale’s spot Ether ETFs on the NYSE Arca represents a pivotal moment in the integration of digital assets into traditional financial markets. By offering these ETFs, Grayscale is providing investors with a regulated and secure way to gain exposure to Ethereum, further bridging the gap between traditional finance and the growing world of digital currencies. This development, along with the entry of other major financial institutions into the Ether ETF space, underscores the increasing acceptance and recognition of cryptocurrency as a transformative asset class.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
