Grayscale’s Ethereum ETF Could Lose $110M Every Day During First Month of Trading: Report
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According to analysts at Kaiko, if Grayscale’s upcoming Ether exchange-traded fund (ETF) follows a similar trend as its Bitcoin Trust (GBTC), it could experience daily outflows of around $110 million in its first month.
This is based on GBTC’s launch as an ETF on Jan. 11, which saw $6.5 billion leave the fund in the first month. With an AUM of $11 billion, ETHE could see similar outflows, amounting to approximately 30% of ETH’s average daily volume on Coinbase.
The researchers also noted that in the past three months, ETHE has traded at a discount to its net asset value (NAV) of up to 26%, which is expected to narrow as it becomes a spot ETF.
This could also lead to further outflows or redemptions.
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