{"id":15588,"date":"2024-07-26T17:05:00","date_gmt":"2024-07-26T14:05:00","guid":{"rendered":"https:\/\/forklog.com\/en\/bitwise-promotes-ethereum-etf-on-new-york-stock-exchange-facade\/"},"modified":"2024-07-26T17:05:00","modified_gmt":"2024-07-26T14:05:00","slug":"bitwise-promotes-ethereum-etf-on-new-york-stock-exchange-facade","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bitwise-promotes-ethereum-etf-on-new-york-stock-exchange-facade\/","title":{"rendered":"Bitwise Promotes Ethereum ETF on New York Stock Exchange Facade"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>Bitwise advertised ETH-ETF on the NYSE facade.<\/li>\n<li>Ethereum will continue to face pressure in the coming weeks due to active withdrawals from Grayscale&#8217;s ETHE.<\/li>\n<\/ul>\n<\/div>\n<p>Bitwise Asset Management displayed a banner on the facade of the <span data-descr=\"New York Stock Exchange\" class=\"old_tooltip\">NYSE<\/span> to promote its newly launched spot Ethereum-ETF under the ticker ETHW.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Bitwise Ethereum ETF banner going up outside the iconic facade at the New York Stock Exchange this evening.<\/p>\n<p>For the fund\u2019s prospectus &#038; risk disclosures, visit: <a href=\"https:\/\/t.co\/coYFoKerma\">https:\/\/t.co\/coYFoKerma<\/a> <a href=\"https:\/\/t.co\/KKjkmW8hKA\">pic.twitter.com\/KKjkmW8hKA<\/a><\/p>\n<p>\u2014 Teddy Fusaro (@teddyfuse) <a href=\"https:\/\/twitter.com\/teddyfuse\/status\/1816590457230766507?ref_src=twsrc%5Etfw\">July 25, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;The [<span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span>] surrenders to a more powerful regulator. It is Ethereum that now provides standardized market access to all Internet participants. The network defeats the state,&#8221;<\/em> commented former Coinbase CTO Balaji Srinivasan.<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The flag of ETH is raised over Wall Street.<\/p>\n<p>And the SEC surrenders to a more powerful regulator.<\/p>\n<p>Because it is Ethereum that now provides standardized market access to all Internet participants.<\/p>\n<p>The network defeats the state.<a href=\"https:\/\/t.co\/7nlQCxXvWz\">pic.twitter.com\/7nlQCxXvWz<\/a><\/p>\n<p>\u2014 Balaji (@balajis) <a href=\"https:\/\/twitter.com\/balajis\/status\/1816695480014741752?ref_src=twsrc%5Etfw\">July 26, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to <a href=\"https:\/\/sosovalue.xyz\/assets\/etf\/us-eth-spot\">SoSoValue<\/a>, in terms of cumulative inflow, ETHW ($250 million) is second only to BlackRock&#8217;s ETHA ($354.9 million).<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/1-1124.webp\" alt=\"1-1124\" class=\"wp-image-237850\"\/><figcaption class=\"wp-element-caption\">Data: SoSoValue.<\/figcaption><\/figure>\n<p>In terms of <span data-descr=\"net asset value\" class=\"old_tooltip\">NAV<\/span>, Bitwise&#8217;s exchange product also ranks second among &#8220;new&#8221; instruments \u2014 $229 million compared to BlackRock&#8217;s $335.7 million.<\/p>\n<h2 class=\"wp-block-heading\">Prospects for Grayscale&#8217;s ETHE<\/h2>\n<p>Within three days of the ETF&#8217;s approval, investors withdrew $1.16 billion from Grayscale&#8217;s ETHE.<\/p>\n<p>ETHE clients are reacting to the higher fees of 2.5% compared to competitors&#8217; 0.19-0.25%. Grayscale also launched the Grayscale Mini Trust Ethereum ETF (ETH), with fees of 0.15%. Some of the $1.6 billion withdrawn from ETHE may have flowed into ETH ($119.2 million).<\/p>\n<p>The capital outflow from ETHE, combined with a sharp correction in the price of ether since the ETF&#8217;s launch, contributed to a decline in <span data-descr=\"assets under management\" class=\"old_tooltip\">AUM<\/span> from $9.2 billion <a href=\"https:\/\/etfs.grayscale.com\/ethe\">to $7.5 billion<\/a>.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/2-843.webp\" alt=\"2-843\" class=\"wp-image-237851\"\/><figcaption class=\"wp-element-caption\">Data: <a href=\"https:\/\/www.theblock.co\/post\/307730\/grayscale-ethe-outflows-ether\">The Block<\/a>.<\/figcaption><\/figure>\n<p>Bloomberg analyst James Seyffart noted that the net outflow from GBTC was slower in proportion to its asset volume.<\/p>\n<p>He explained the heightened incentive to exit ETHE by noting that when the bitcoin fund launched, it was still trading at a discount to NAV, whereas in the Ethereum product, arbitrageurs had already eliminated it.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Here&#8217;s the side by side of the first day of trading for <a href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&#038;ref_src=twsrc%5Etfw\">#Ethereum<\/a> ETFs vs <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> ETFs. <\/p>\n<p>The major difference to me is the comparatively massive <a href=\"https:\/\/twitter.com\/search?q=%24ETHE&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETHE<\/a> outflow. I think <a href=\"https:\/\/twitter.com\/search?q=%24GBTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$GBTC<\/a> didn&#8217;t have that on day 1 because it was still at a meaningful discount when it launched <a href=\"https:\/\/t.co\/w0nkJDzjX3\">pic.twitter.com\/w0nkJDzjX3<\/a><\/p>\n<p>\u2014 James Seyffart (@JSeyff) <a href=\"https:\/\/twitter.com\/JSeyff\/status\/1816108797435232623?ref_src=twsrc%5Etfw\">July 24, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2 class=\"wp-block-heading\">Impact on Ethereum Price<\/h2>\n<p>CEO and co-founder of SynFutures Rachel Lin <a href=\"https:\/\/www.theblock.co\/post\/307730\/grayscale-ethe-outflows-ether\">suggested<\/a> that analyzing the sales dynamics of Grayscale&#8217;s GBTC could provide insights into what might happen next. According to her estimates, the structure lost 50% of its bitcoin assets in the first few months of trading, although the volume of sales subsequently decreased.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;ETHE has already lost or redistributed more than 17% of AUM. At the current pace of net outflows, it will reach this [50%] mark much sooner, indicating an even greater downside for ether,&#8221;<\/em> the specialist suggested.<\/p>\n<\/blockquote>\n<p>According to Burak Kesmechi from CryptoQuant, on-chain data on Ethereum flows to custodian addresses can serve as a leading indicator of whether ETHE will continue to exert pressure on the asset&#8217;s price.<\/p>\n<p>Six ETH-ETF issuers, including Grayscale, use Coinbase as a partner, VanEck uses Gemini, and Fidelity stores the coins independently.<\/p>\n<p>In the first two trading days, 160,930 ETH were deposited on Coinbase. The specialist indicated that Grayscale&#8217;s ETHE, from which $811 million was withdrawn during this period, is likely the source of these large ether flows.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;In the last 48 hours, 47,811 ETH left Coinbase. However, a net inflow of 113,119 ETH created significant selling pressure. Following this situation, the price of ether fell by 12% to $3100,&#8221;<\/em> Kesmechi explained.<\/p>\n<\/blockquote>\n<p>Lin also mentioned the largest stock market pullback in two years by the Nasdaq index.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;If the indicator continues to correct, cryptocurrencies are unlikely to stay on the sidelines, at least in the short term,&#8221;<\/em> she emphasized.<\/p>\n<\/blockquote>\n<p>In a comment for ForkLog, Allbridge.io co-founder Andrey Veliky noted that the initial phase after the launch of ETH-ETF is accompanied by increased volatility as the market adapts to the new product due to &#8220;selling the news.&#8221;<\/p>\n<p>In the medium term, the expert expects stabilization in the growth of the cryptocurrency&#8217;s price and trading volume.<\/p>\n<p>ETH-ETF is an important step towards the institutionalization of digital assets. It provides traditional financial institutions with a safe and reliable way to invest in cryptocurrencies, which could stimulate their further adoption and integration into <span data-descr=\"traditional finance\" class=\"old_tooltip\">TradFi<\/span>.<\/p>\n<p>In a comment for ForkLog, trader Vladimir Cohen discussed the importance of ETH-ETF and the current state of the market.<\/p>\n<p>Earlier, 10x Research also noted &#8220;signs of new problems&#8221; following the Ethereum sell-off.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitwise advertised ETH-ETF on the NYSE facade. Ethereum will continue to face pressure in the coming weeks due to active withdrawals from Grayscale&#8217;s ETHE. Bitwise Asset Management displayed a banner on the facade of the NYSE to promote its newly launched spot Ethereum-ETF under the ticker ETHW. Bitwise Ethereum ETF banner going up outside the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15587,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[949,46,943,1145,1150,1138],"class_list":["post-15588","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitwise","tag-ethereum","tag-grayscale-investments","tag-market-analysis","tag-news-plus","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"10","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/15588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=15588"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/15588\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/15587"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=15588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=15588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=15588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}