Investors have yanked more than $2 billion from Grayscale’s high-fee Ethereum exchange-traded fund (ETF) since it was converted from a closed-end fund last month.
Ether’s price action seems to reflect the lackluster ETF action, with ETH slipping below the $3,000 psychologically important level.
Grayscale ETH Trust Sheds $2.1 Billion
The newly launched spot Ethereum exchange-traded funds (ETFs) had a harrowing week, with net inflows into the nine ETFs currently overwhelmed by net outflows from the Grayscale Ethereum Trust, ETHE.
This could be a sign that investors are balking at the fund’s 2.5% annual management fee, which is 10 times that of the next highest fee among all the issuers. In the months since the firm’s flagship Grayscale Bitcoin Trust (GBTC) started trading in the States as a spot Bitcoin ETF in mid-January, the fund has seen over $15 billion worth of outflows.
The rush for the exits on the Ether investment product brings ETHE’s historical net outflow to a considerable $2.12 billion, indicating an ongoing ordeal for one of the market’s largest players.
However, it’s not all bad news for Grayscale. Its recently unveiled Grayscale Ethereum Mini Trust ETF (ETH), sits at the opposite end of the spectrum with a 0.15% fee — the lowest among the spot Ethereum ETFs. The mini fund is designed to alleviate selling pressure on the Grayscale Ethereum Trust and capture a share of its capital outflows.
Ether Price Loses $3k
The price of Ethereum is struggling to regain its footing in the market, as the newborn spot ETH ETFs have yet to push the price of the second-biggest crypto up.
ETH has dropped by 6.9% in the past day, falling below the critical and psychological support level at $3,000. At press time, the asset was changing hands for $2,490 amid bloodshed across the crypto market. This past-day performance underscores Ether’s woes in the past week. Data from CoinGecko shows that Ethereum has lost 24.5% of its value in the last seven days alone.
Meanwhile, Bitcoin has plunged 4.9% over the last 24 hours, dipping below the $58,000 mark and pushing its seven-day decline to around 14.2%.
