Coinbase Prime has transferred 4,381 Ether tokens to Grayscale addresses in the last 10 hours. This roughly translates to a collective value of $14.79 million, per data shared by Arkham on July 25, 2024. This comes after Spot Ether ETF makes its debut in the US market and banks a volume of more than $1 billion. For reference, ETH is exchanging hands at $3,170.21, down by 7.81% in the last 24 hours at the time of writing this article.
A reason behind this transfer is yet to make it to the surface; however, it comes after Grayscale transferred $1 billion in Ethereum tokens to Coinbase Prime. Grayscale made this transfer before the launch of its regulated investment vehicle, an exchange-traded fund.
That led to speculation that Grayscale was planning to sell off its holdings and reinvest in other digital assets like Solana ($SOL). Jon Campagna soon dismissed those claims by stating that it was unlikely for Grayscale to shift its ETH holdings. The managing partner at Nexyst Digital further explained that the transfer was done as 10% of its ETHE holdings were transferred into a separate Ethereum ETF on July 18, 2024.
The market then waited to see what happened next, as Grayscale was not willing to lower its fee on ETHE from 2.5%. Eric Balchunas, an ETF analyst at Bloomberg, said that this only meant that their fees were 10x higher than the competition’s.
Grayscale, along with Bitwise, received final approval for listing from the NYSE. Many are now calling these 7 days the Ether ETF launch week. The investment product is expected to overperform Spot Bitcoin ETF in the first 18 months. It could generate flows worth $18 billion. Moreover, it will facilitate the adoption and recognition of the crypto market as its days of trading go on.
One of the most recent updates regarding Spot Ether ETF was its volume. The numbers breached the mark of $1 billion, making it a historical moment for the cryptosphere. Grayscale’s ETHE fund has recorded outflows, resulting in a dip in Ether’s token value.
ETH is down by 7.49% for a value of $3,181.63 at the moment. It entered the red trade phase by slipping below the milestone of $3,442.08. The dip has only been flowing since then, and the token has little window to escape from it. Chances are that ETH will rebound from this low as its ETF spends more time on the trading floor. Traders and investors are warming up to the debut of the Spot Ether ETF. It is only natural for the market to climb the ladder as time goes on.
For ETH, the dip is temporary and subject to volatility. Bitcoin ($BTC) has withstood the blow despite being hammered twice by the German Government selling seized tokens and Mt. Gox paying out settlements to victims of the 2014 hack.