Why is Grayscale dumping ETH?
Higher fees Grayscale has fees 10 times higher than other ETF issuers, causing investors to withdraw their funds
Investor rotation
Investors are moving their money to other L1s, such as Solana, leading to a decrease in ETH investment
Staking limitations
ETH ETFs do not allow staking, prompting investors to pull out their money
Similar situation to GBTC
Grayscale's ETH ETF outflow magnitude is much bigger than GBTC's, with a potential depletion of ETH funds in 5 weeks
Additional information
- Grayscale Ethereum Trust (ETHE) had a net outflow of over $327 million on Wednesday, taking the total since inception to $800 million
- Most other ETH ETFs continued to have inflows during the Wednesday session, with BlackRock's ETHA leading the pack with $283.9 million
- Ether (ETH) is down over 7.5% in the first hours of East Asia's business day, trading above $3,100
