Grayscale’s Ethereum Trust (ETHE), which has not yet converted to an ETF, may be in turmoil if it follows a similar pattern to its Bitcoin Trust (GBTC) in the first month after the switch, according to the research team at cryptocurrency data provider Kaiko. There will be an average daily capital outflow of US$110 million.

Grayscale Bitcoin Trust Fund received approval from the U.S. Securities and Exchange Commission (SEC) on January 11. After switching from a closed-end fund to a spot ETF, its assets under management (AUM) experienced a net outflow of up to 23% in the first month, and the total value About $6.5 billion.

Kaiko analysts pointed out in a report on May 27 that Grayscale’s Ethereum Trust Fund (ETHE) currently has an asset management scale of US$11 billion. If it officially transforms into an ETF and replicates the past speed of GBTC capital outflows, it will mean that the average daily There was an outflow of $110 million, an amount equivalent to 30% of the average daily trading volume of Ethereum (ETH) on Coinbase.

In the past three months, Grayscale’s ETHE has been trading at a discount of -26%, well below its net asset value (NAV). However, recently due to the SEC’s approval of multiple issuers’ 19b-4 filings, Ethereum spot prices have declined. A major step forward on the ETF front, as a result of which the negative premium rate narrowed significantly to -1.28%.

Kaiko researchers pointed out that once it converts to a spot ETF, these buyers for arbitrage purposes will seek to sell, so it is "reasonable to expect" outflows or redemptions.

This article Kaiko: Grayscale Ethereum spot ETF will experience an average daily capital outflow of US$110 million if it follows the GBTC model first appeared on Zombit.