Grayscale Ethereum Trust lost $811 million in its first two trading days, surpassing the combined inflows from other Ether ETFs.
Following Ether Exchange-Traded Funds (ETF) approval on Monday, the eight issuers launched their products, which began trading on Tuesday. Grayscale launched two ETFs with the tickers ETHE and ETH. Seven launched Ether ETFs have concluded their first two trading days on the green side. However, the massive outflows from Grayscale ETHE have a ripple effect, impacting the entire Ether ETF market.
Ether ETFs Outflows $133M
On their first market day, United States Ether ETFs saw a significant inflow of $106.6 million. However, the second day saw a substantial outflow of $133.3 million, primarily due to heavy Grayscale Ethereum Trust ETHE sales, underscoring its influence on the Ether ETF market.
Grayscale’s ETHE dominated the bearish market on Tuesday, selling off about $326.9 million. While other ETFs experienced inflows, the outflow from Grayscale’s ETHE exceeded their inflows. Fidelity’s FETH saw the highest inflow of about $74.5 million, while Bitwise’s ETHW took in $29.6 million. Four approved Ether ETFs collectively took in $43.6 million, highlighting the stark contrast in market dynamics.
Unlike the ETHE, Grayscale’s Mini Ethereum Trust, ETH, took in $45.9 million, and 21Shares’ CETH didn’t record any market movement on its second trading day. According to data from Farside Investors, the entire Ether ETF market is on the red side, losing $26.7 million.
Like Grayscale’s Bitcoin Trust (GBTC), Grayscale’s ETHE has recorded outflows within its starting market days due to high maintenance fees. Grayscale charges its investors a 2.50% maintenance fee, while other ETFs’ charges are within the 0.20 and 0.25% range. It has sold $811 million, even more than GBTC outflowed within its first two market days.
Considering the possible effects of its high fee charges, Grayscale acquired more Ethereum to back its ETFs. According to Grayscale’s website, despite the massive outflows, Grayscale still holds over 2.4 million ETH worth $7.9 billion.
Ethereum Price Action
Following the U.S Securities and Exchange Commission (SEC) Ether ETF approval, the market for Ethereum has not been bullish. It has plummeted by more than 11%, from $3540 on Monday to $3130 earlier today. At press time, Ethereum still trades below the $3200 mark.
