🚨 Grayscale's Ethereum ETF Faces Major Outflows in First Three Days 📉

The launch of US spot Ethereum exchange-traded funds (ETFs) has been a wild ride 🎢. After receiving SEC approval, eight out of nine ETFs began trading on Tuesday 📊. While most ETFs saw strong inflows 💸, Grayscale's ETHE fund experienced significant outflows 🚫.

Launch of ETH ETFs: A Mixed Bag 🎁

Trading for US ETH ETFs started on July 23, with eight funds attracting over $1 billion in inflows on the first day 🚀. However, Grayscale's ETHE fund, previously traded on the OTC market, saw heavy outflows from day one 📉.

Why the Outflows? 🤔

Experts suggest that if the current outflow rate continues, Grayscale's ETF could run out of Ethereum in less than a month ⏰. One reason could be ETHE's high fee of 2.5% 🤑, compared to the new mini trust ETH ETF's fee of just 0.15% 🎉.

Market Impact: A Ripple Effect🌊:

Alongside Grayscale, five other ETF issuers use Coinbase as their custodian, while VanEck uses Gemini, and Fidelity manages its Ethereum in-house 🏠. In the first two days, Coinbase saw an inflow of about 160,930 ETH 💰. However, ETHE's outflows led to $811 million exiting Coinbase, increasing selling pressure and contributing to the drop in Ethereum's price 📊.

Future Outlook: A New Era🔮:

The Ethereum ETF launch has turned into a "sell the news" event 📰. Investors are moving away from Grayscale's ETHE due to its high fees and lack of discounts, while new ETFs, including Grayscale's mini trust, are attracting significant inflows 🌈. This trend suggests that Grayscale's older ETF will continue to face heavy outflows, maintaining pressure on Ethereum's price 📉. Only time will reveal the long-term impact on the market 🔮.

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