Crypto Expert Provides Insight into Grayscale’s Upcoming Ethereum and Bitcoin ETF Spin-Offs

Grayscale Acknowledges Bloomberg Analyst’s Insights on ETF Spin-Offs

Grayscale, a leading crypto asset manager, recently praised Bloomberg ETF analyst James Seyffart for his detailed analysis of the upcoming ETF spin-offs. Seyffart provided clarity on the creation of mini ETFs for Ethereum and Bitcoin through spin-offs.

According to Seyffart, the process for creating these mini ETFs for both Ethereum and Bitcoin will be similar. Investors holding shares in Grayscale’s Ethereum Trust will automatically receive an equivalent number of shares in the new mini ETH fund. The distribution is set for July 23 for Grayscale Ethereum Trust and July 31 for Grayscale Bitcoin Trust, requiring investors to be record owners on specified dates to receive the new shares.

The spin-off mechanism has already influenced trading prices, with ETHE experiencing a price drop linked to the upcoming share distribution. Post-spin-off, the new mini ETH and BTC shares are expected to trade at lower prices compared to the original funds, reflecting the division of the funds’ value.

Grayscale affirmed that investors will receive the new shares automatically without needing to take any action. The distribution aims to provide investors with a choice between a lower-fee product and a fund with greater liquidity and an extended track record. This initiative follows Grayscale’s launch of two spot Ethereum products on NYSE Arca, expanding its product offerings.

Since the commencement of trading for these Ethereum spot ETFs, ETHE has seen outflows of $1.84 billion in less than a week. In contrast, the mini ETF “ETH” has attracted inflows totaling $181 million.

Grayscale took to social media to acknowledge the accuracy of Seyffart’s information and express appreciation for his insights. The company highlighted the creation of ETH from ETHE via a spin-off and indicated a similar process for BTC from GBTC.

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