Grayscale's Ethereum ETF sees $484 million in outflows on its first day

Investors withdrew $484 million from the Grayscale ethereum Trust (ETHE), now trading as an ETF, on its first day of trading. data From Farside reveals.

As reported by crypto Briefing, $458 million worth of ETHE shares were traded on the first day. The outflows now indicate significant selling activity. Bloomberg ETF analyst Eric Balchunas estimates that the outflows represent around 5% of the fund’s total value.

“I’m not sure The Eight rookies can make up for it with innings of this magnitude. On the other hand, maybe it’s best to get this over with quickly, like ripping off a band-aid,” Balchunas said. x.com/EricBalchunas/status/1815890742457278751″ target=”_blank” rel=”nofollow noopener noreferrer”>fixed.

Grayscale has been a dominant player in the ethereum investment market. Its ethereum Trust is a leading option for regulated ethereum investment, with ethereum-mini-trust-ticker-100000274.html” target=”_blank” rel=”noopener nofollow noreferrer”>More than 9 billion dollars in assets from July 2024.

Now that other issuers are coming to market, there may be some rotation toward these new products, particularly since Grayscale's ethereum ETF is seen as more expensive than others.

Similar to the experience with Grayscale’s bitcoin Trust, the outflows from Grayscale’s ethereum Trust are not entirely unexpected. With an expense ratio of 2.5%, ETHE is the most expensive US ETF that invests directly in ethereum.

In contrast, the Grayscale ethereum Mini Trust (eth), the company’s recently launched product, is one of the lowest-cost ethereum spot funds in the US market.

The fund management fee is 0.15% of the trust's net asset value (NAV). The 0.15% fee is waived for the first 6 months of operations or up to a maximum of $2 billion in assets under management (AUM).

eth’s 0.15% fee is lower than that of ethereum spot ETFs from providers like BlackRock, Fidelity and Invesco, which have fees ranging from 0.19% to 0.25%, crypto Briefing reported.