Bloomberg Analyst Clarifies Details of Grayscale’s Upcoming Ethereum and Bitcoin ETF Splits

Grayscale, a leading crypto asset manager, has welcomed Bloomberg ETF analyst James Seyffart’s comprehensive analysis of its upcoming ETF spin-offs.

In a recent article on X, Seyffart explain upcoming spin-offs involving Grayscale’s Ethereum and Bitcoin mini ETFs. Seyffart’s ideas clarified the creation of a mini Ethereum (ETH) ETF from Grayscale’s Ethereum Trust (ETHE) via a spin-off.

According to Seyffart, the creation of these mini ETFs will follow the same procedure for Ethereum and Bitcoin. Investors holding shares in Grayscale’s Ethereum Trust will receive an equal number of shares in the new ETH mini fund.

This distribution is scheduled for July 23 for Grayscale Ethereum Trust and July 31 for Grayscale Bitcoin Trust. It is important to note that investors must be registered owners on the specified dates (July 18 for ETHE and July 30 for GBTC) to receive the new shares.

Impact on trading prices

It is worth noting that the split mechanism has already had an impact on trading prices. Seyffart noted that the recent drop in ETHE price was directly related to the upcoming share distribution, with a similar trend expected for GBTC on July 30.

Currently, ETHE is trading at around $29 per share, while GBTC is trading at around $59 per share. After the split, the new mini shares of ETH and BTC are expected to trade at lower prices, around $2-3 for the ETH mini ETF and $5-6 for the BTC mini ETF, reflecting the split in value of the original fund.

Amid the Bloomberg ETF analyst update, Grayscale reached out to X to acknowledge the accuracy of the information and congratulate Seyffart.

Automatic distribution of shares

Shades of grey underlines Investors will not need to take any action to receive the new shares. The distribution will be automatic, with the shares being posted to accounts shortly after the announced dates. This move is intended to offer investors the choice between a product with lower fees and a fund with greater liquidity and a longer performance history.

This spin-off initiative follows that of Grayscale launch of both Ethereum spot products on NYSE Arca, further expanding its product portfolio.

However, since these spot Ethereum ETFs began trading last Tuesday, ETHE has not seen any positive inflows. Instead, it has been drained of $1.84 billion in seven trading days. In contrast, the mini “ETH” ETF has seen a cumulative inflow of $181 million.

Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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