Ethereum ETF by Grayscale sees significant losses, sheds over $1 billion post-launch
Grayscale’s Ethereum ETF experienced significant net outflows of around $346 million on Thursday, marking a total of $1.1 billion in outflows within just three days of trading, as reported by data from Farside Investors. Following this trend, the ETF’s assets under management dropped from over $9 billion to $7.4 billion after the third trading day, showcasing a substantial decline since the introduction of US spot Ethereum ETFs.
In contrast, BlackRock’s iShares Ethereum Trust (ETHA) emerged as a leader in inflows on Thursday, attracting approximately $71 million. Additionally, Grayscale’s Ethereum Mini Trust (ETH), a derivative of Grayscale’s Ethereum Trust, followed closely with over $58 million in net inflows. Other funds such as 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, while the remaining ETFs saw no significant flows.
Despite the inflows into eight Ethereum ETFs, the combined net outflow for all nine funds reached $152 million on Wednesday, marking the largest outflow since their debut on July 23. This outflow was primarily driven by Grayscale’s Ethereum ETF (ETHE).
Grayscale’s ETHE carries a 2.5% fee, making it a relatively expensive choice for investors seeking exposure to Ethereum. Consequently, investors have been divesting their ETHE shares and transitioning to lower-fee alternatives. This scenario mirrors the experience of Grayscale’s Bitcoin ETF (GBTC), which witnessed outflows exceeding $5 billion in its initial trading month, according to data from Bloomberg.
However, Grayscale’s Ethereum Mini Trust (ETH) could potentially break this pattern. With a 0.15% fee, ETH stands out as one of the most cost-effective spot Ethereum funds in the US market. Since its conversion into an ETF, the fund has been consistently attracting inflows, offering a more attractive option for investors compared to ETHE.
