Banking giant JPMorgan recently commented on the underwhelming performance of spot Ethereum exchange-traded funds in the U.S., pointing to their larger-than-expected outflows from Grayscale's ETHE. 

These products have suffered from roughly $500 million worth of outflows since their launch. 

As reported by U.Today, JPMorgan predicted that Ethereum ETFs would flop despite some bullish projections by crypto-native firms. Still, the relentless outflows recorded by ETHE were somehow a surprise even for the banking giant. 

Ethereum ETFs made their much-anticipated debut in July after the U.S. Securities and Exchange Commission unexpectedly greelit them in June. 

Unfortunately for the bulls, these products started recording outflows on the second day of trading due to Grayscale's bleeding. 

The leading crypto asset manager also launched a mini-version of its recently converted Ethereum trust. However, it only managed to attract a modest $200 million worth of inflows. 

Since there is little demand for Ethereum ETFs, asset managers are exploring hybrid ETFs that combine Bitcoin and Ethereum, according to JPMorgan.

Breaking the outflow streak 

On Aug. 28, Ethereum ETFs did manage to break the nine-day outflow streak by finally recording $5.8 million worth of inflows. 

Expectedly, BlackRock's ETHA led the way with $8.3 million worth of inflows.