Grayscale ETH ETF outflows surpass $1 billion mark since launch

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

By Farside dataThe latest outflow brings the fund's losses to $1.1 billion in the last three trading days following its recent conversion.

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

Elsewhere, BlackRock’s iShares ethereum Trust (ETHA) topped the inflow charts on the same day, with $71 million in new investments. Close behind was Grayscale’s new subsidiary, the ethereum Mini Trust (eth), which recorded over $58 million in inflows.

Other ethereum funds such as 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 Invesco/Galaxy's ethereum ETF (QETH) saw smaller inflows of $8 million and $6.2 million respectively, while some funds saw no new flows at all.

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

Originally launched in 2017, ETHE allowed institutional investors to buy and hold ethereum, but required them to adhere to a six-month lock-up period. Since its transformation into an Ether spot 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, according to reports.

However, the recently converted ethereum Mini Trust may be a game-changer for Grayscale with its low 0.15% fee, making it one of the most profitable ethereum spot funds in the US. The fund has seen increasing inflows since converting to an ETF.

Amidst these market movements, x.com/JakeGagain/status/1816715097169146229″ target=”_blank” rel=””>rumors circulated On x, there was talk of a possible sale of a wallet related to the ethereum Foundation that transferred 92,000 eth, valued at around $289 million. This led to speculation about a possible drop in the price of ethereum.

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