Grayscale Announces 10% Spin-Off of ETHE to Create Ethereum Mini Trust

Jul 18, 2024, 02:22 PM

Grayscale Investments has announced a spin-off of 10% of the underlying Ether in its Grayscale Ethereum Trust (ETHE) to create a new Grayscale Ethereum Mini Trust (ETH Trust). This move, effective as of July 18, 2024, has caused a temporary drop of 8.8% in the price of ETHE, which some holders have misinterpreted as a loss in value. However, the overall exposure for holders remains the same, and the apparent drop is due to the distribution of the new mini ETF. The new ETF, to be airdropped to current ETHE holders, will launch on July 23, 2024. Grayscale assures investors that no value has been lost in the process, and holders are actually up 1.3% as they will receive an additional 11% of their ETHE value in the form of the new mini trust.