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Grayscale Ethereum ETF bleeds Thursday, outflows exceed $1 billion since debut

Grayscale Ethereum ETF bleeds Thursday, outflows exceed $1 billion since debut

Cryptobriefing2024/07/26 05:28
By:Cryptobriefing

Key Takeaways

  • Grayscale's Ethereum ETF saw $346 million in net outflows on its third day of trading.
  • BlackRock's iShares Ethereum Trust led the pack with $71 million in inflows.

Grayscale’s Ethereum ETF (ETHE) ended Thursday with approximately $346 million in net outflows, extending its losses to $1.1 billion within three trading days since its conversion, data from Farside Investors reveals. After the third trading day, ETHE’s assets under management plummeted from over $9 billion to $7.4 billion, a remarkable decline since the launch of US spot Ethereum ETFs.

Grayscale Ethereum ETF bleeds Thursday, outflows exceed $1 billion since debut image 0 Grayscale Ethereum ETF bleeds Thursday, outflows exceed $1 billion since debut image 1 Source: Farside Investors

In contrast, BlackRock’s iShares Ethereum Trust (ETHA) led inflows on Thursday, attracting approximately $71 million. Grayscale’s Ethereum Mini Trust (ETH), a spinoff of Grayscale’s Ethereum Trust, followed with over $58 million in net inflows.

Other funds, including Fidelity’s Ethereum Fund (FETH), Bitwise’s Ethereum ETF (ETHW), VanEck’s Ethereum ETF (ETHV), and Invesco/Galaxy’s Ethereum ETF (QETH), also reported inflows. The remaining ETFs saw zero flows.

Despite inflows to eight Ethereum ETFs, the combined net outflow for all nine funds on Wednesday reached $152 million, the largest since their trading debut on July 23. This outflow was largely driven by Grayscale’s ETHE.

ETHE’s 2.5% fee makes it a considerably expensive option for investors who are looking to get exposure to Ethereum. Investors have been selling their ETHE shares and moving to lower-fee newcomers.

The situation is not entirely unexpected given the experience of Grayscale’s Bitcoin ETF (GBTC). The fund’s outflows topped $5 billion after the first trading month, according to data from Bloomberg.

However, this time, Grayscale’s Ethereum Mini Trust could help it get rid of the deja vu. ETH’s 0.15% fee makes it one of the lowest-cost spot Ethereum funds in the US market, and the fund’s inflows have consistently grown since it was converted into an ETF.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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