Digital asset management giant Grayscale’s upcoming Ether ETF, ETHE, could see substantial outflows averaging $110 million daily, akin to its Bitcoin counterpart’s experience, according to a Kaiko analysts report.
This estimate is drawn from the experience of Grayscale Bitcoin Trust (GBTC), which transitioned to an ETF earlier this year, witnessing outflows totaling $6.5 billion in its first month.
With ETHE’s $11 billion AUM, a comparable outflow rate could amount to 30% of ETH’s daily volume on Coinbase. ETHE traded up to a 26% discount to its NAV recently, likely prompting outflows upon ETF conversion.
GBTC’s post-ETF discount notably narrowed, a trend expected for ETHE. Despite initial discounts, recent SEC nods have reduced ETHE’s discount, potentially stabilizing post-ETF.
Kaiko analysts also pointed out that despite initial outflows from GBTC, other Bitcoin ETFs saw inflows surpassing these outflows by January’s end. This suggests broader market confidence in crypto ETFs.
The approval of Grayscale’s Ether ETF signals a positive shift in regulatory clarity, potentially bolstering Ethereum’s performance amidst uncertain short-term ETF inflows.
Also Read: Grayscale Drops Staking from Spot Ether ETF Proposal
