Grayscale ETH ETF outflows surpass $1b mark since launch

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

Per Farside data, the latest outflow brings the fund’s losses to $1.1 billion over the past three trading days following its recent conversion.

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

On the other hand, BlackRock’s iShares Ethereum Trust (ETHA) led the inflow charts on the same day, with $71 million in new investments. Close behind was Grayscale’s new spinoff, the Ethereum Mini Trust (ETH), which saw more than $58 million in inflows.

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

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

Despite these gains for eight Ethereum ETFs, total combined net outflows reached $152.4 million on July 24, marking the highest since their market debut on July 23, primarily driven by large withdrawals from ETHE.

Originally launched in 2017, ETHE allowed institutional investors to purchase and hold Ethereum but required them to adhere to a six-month lock-up period. Since its transformation into 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, prompting investors to switch to newer funds with lower fees. This pattern mirrors the situation with Grayscale’s Bitcoin ETF (GBTC), which saw over $5 billion in outflows in its first-month post-conversion, per reports.

However, the recently converted Ethereum Mini Trust may provide a turnaround for Grayscale with its low 0.15% fee, making it one of the most cost-effective spot Ethereum funds in the US. The fund has seen growing inflows since becoming an ETF.

Amid these market movements, rumors circulated on X about a potential sale involving an Ethereum Foundation-related wallet transferring 92,000 ETH, valued at about $289 million. 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% over the previous day.