News

Grayscale Allegedly Sells 5,812 ETH, Possibly For Ethereum Trust Management Fees

In a significant development, Grayscale has reportedly commissioned Flow Traders to sell 5,812 ETH, valued at approximately $21.75 million.

This move is speculated to be for covering the management fees of the Ethereum Trust Fund.

Grayscale imposes a 2.5% annual management fee on the Ethereum Trust (ETHE).

With the current holdings standing at 2.97 million ETH, this fee structure generates an impressive revenue of 74,000 ETH annually, equating to about $280 million. Such a substantial income highlights the lucrative nature of managing the ETHE.

https://x.com/ai_9684xtpa/status/1796482220049518603?t=7-EbnQ68eUVB8p3FiMaUVQ&s=19

Grayscale Has Transferred 34,270 ETH Since July Last Year 

Since July 2023, Grayscale has transferred 34,270 ETH to Flow Traders, valued at $88.22 million. Based on their past operations, it is anticipated that these transferred ETH will be gradually recharged to various exchanges over the coming days.

This strategy of transferring ETH to Flow Traders and subsequently distributing them across exchanges indicates a methodical approach by Grayscale to manage liquidity and ensure smooth operations.

Related Post

The consistent revenue from management fees underscores the profitable business model Grayscale employs within the cryptocurrency space.

Grayscale’s recent actions and financial strategies provide a glimpse into the operational mechanics of one of the largest crypto asset managers.

The company’s ability to generate significant revenue through management fees, coupled with its methodical approach to liquidity management, underscores its influential position in the cryptocurrency market.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!

Image Source: jruiz1108/123RF // Image Effects by Colorcinch

Will Izuchukwu

Will is a News/Content Writer and SEO Expert with years of active experience. He has a good history of writing credible articles and trending topics ranging from News Articles to Constructive Writings all around the Cryptocurrency and Blockchain Industry.

Share
Published by
Will Izuchukwu

Recent Posts

TRX Price Prediction: Tron Network Fee Cut to Spark New ATH?

Back into Spotlight: Tron Network Fee Cut Could Push TRX to ATH, But This DeFi…

7 hours ago

Altcoin Alert: Crypto Market Cap Breaches Key Level Hinting at an 8000x Rally for this Shiba Inu Killer

Shiba Inu (SHIB) gave enormous returns in 2021, making many early holders millionaires. After the…

11 hours ago

XRP Crash? XRP Falls Below $0.5 Resistance Level as Next Gen Altcoin JetBolt Takes Over

Spooky season might be over but doom is still looming as Ripple’s XRP falls below…

14 hours ago

This New Exchange Token Is Poised for a Price Surge Alongside Cardano and Avalanche – Analysts Predict Huge Gains This November

Three promising altcoins are causing a stir among investors this November: Avalanche (AVAX), Cardano (ADA),…

15 hours ago

With Dogecoin Dipping and TRON Holding, Is Lunex the Hottest Crypto Now?  

Everyone knows what the hottest crypto can do. When it was so hot it was…

15 hours ago

Tron Fees To Be Cut In Half Through Proposal 95, Cutoshi Surpasses $600k As TRX Investors Join CUTO Presale

The Tron network has witnessed incredible growth in several areas, especially in its adoption, which…

16 hours ago