Ethereum (ETH) Surges to $3,500 with Strong Double-Digit Gains; Grayscale’s Mini Ethereum ETF Secures SEC Approval, Trading To Begin Soon

Ethereum (ETH) surged past $3,500, reaching a high of $3,517 on July 17 before settling at $3,463. Analysts remain optimistic about Ethereum’s potential to hit new all-time highs, driven by several bullish factors. 

The upcoming launch of spot Ethereum ETFs next week could drive the price of the second-largest cryptocurrency to unprecedented levels, potentially surpassing $5,500, according to Bitwise. 

Although immediate price movements may be volatile — partly due to expected capital outflows from the $11 billion Grayscale Ethereum Trust (ETHE) as it transitions to an ETF— Bitwise’s Chief Investment Officer, Matt Hougan, remains positive.

Meanwhile, following earlier coverage by CNF on the US SEC delaying its decision on Ethereum ETFs filed by BlackRock, Grayscale, and Franklin Templeton, Grayscale has now filed with the US SEC to register shares of a new Ethereum ETF named Grayscale Ethereum Mini Trust, as announced in a recent Grayscale post. 

In addition, the ETF would be created by spinning off and distributing shares from the existing Grayscale Ethereum Trust. James Seyffart, a Bloomberg Intelligence ETF analyst, stated that the mini fluid “should help alleviate some of the likely Grayscale outflows” expected from the conversion of the larger fund. 

Seyffart believes that the mini Ethereum ETF will launch simultaneously with the other ETFs. Ethereum will initially be seeded with 10% of ETH assets. This should help mitigate some of the anticipated outflows from Grayscale. However, the fees for both ETFs remain unknown. 

Furthermore, as previously discussed, the recent interactions between Grayscale and the SEC, along with market responses, offer insights into the evolving cryptocurrency investment landscape and the potential for Bitcoin ETFs.