Grayscale ETH ETF outflows surpass $1b mark since launch

Grayscale’s Ethereum ETF (ETHE) had another day of significant net outflows on July 25, totaling approximately $346 million.

The latest outflow brings the fund’s losses in the last three trading days since its last conversion to $1.1 billion, according to Farside data.

Since its conversion, Grayscale’s Ethereum ETF (ETHE) assets under management have fallen sharply from $9 billion to $7.4 billion. This significant decline coincides with the launch of its US spot Ethereum ETFs.

On the other hand, BlackRock’s iShares Ethereum Trust (ETHA) led the same-day inflow charts with $71 million in new investments, followed closely by Grayscale’s new subsidiary Ethereum Mini Trust (ETH), which saw more than $58 million in inflows.

Other Ethereum funds such as Fidelity Ethereum Fund (FETH) and Bitwise’s Ethereum ETF (ETHW) also reported significant inflows of $34.32 million and $16.34 million, respectively.

VanEck’s Ethereum ETF (ETHV) and Invesco/Galaxy Ethereum ETF (QETH) saw smaller inflows of $8 million and $6.2 million respectively, while some funds saw no new inflows at all.

Despite these gains across the eight Ethereum ETFs, total net outflows reached $152.4 million on July 24, the highest level since their launch on July 23, primarily due to large withdrawals from ETHE.

Initially launched in 2017, ETHE allowed institutional investors to buy and hold Ethereum but required them to abide by a six-month lockup period. Since converting to a spot Ether fund on July 22, investors have been able to sell their holdings more freely.

The 2.5% management fee for ETHE is relatively high and encourages investors to switch to newer funds with lower fees. This pattern mirrors that of Grayscale’s Bitcoin ETF (GBTC), which reportedly saw over $5 billion in outflows in its first month after conversion.

However, the recently converted Ethereum Mini Trust can provide a conversion for Grayscale with a low 0.15% fee, making it one of the most cost-effective spot Ethereum funds in the U.S. The fund has seen increased inflows since becoming an ETF.

Amid these market movements, rumors circulated about a possible sale involving the transfer of 92,000 ETH worth approximately $289 million to a wallet related to the Ethereum Foundation on X. This led to speculation about a possible price drop for Ethereum.

At the time of writing, Ethereum (ETH), the largest altcoin, was trading at $3,252, up 2.5% from the previous day.