🚀🚀Buckle up, BTC enthusiasts! Grayscale's upcoming spot Ether exchange-traded fund (ETF) might see an average outflow of a whopping $110 million per day, following the trend set by the company’s Bitcoin Trust in its first month, says a report by Kaiko. 📉

🎉The U.S. Securities and Exchange Commission gave the green light to spot Ether ETFs last week, and it's all eyes on Grayscale now. The Grayscale Bitcoin Trust (GBTC) transitioned to an ETF on January 11 and saw a 23% outflow of its assets under management (AUM) in the first month, amounting to $6.5 billion. 😮

🔮If Grayscale’s Ether Trust (ETHE) sees a similar level of outflows as GBTC, we could be looking at average daily outflows of $110 million, representing 30% of ETH’s average daily volume on Coinbase. Over the past three months, ETHE has traded at a discount of up to 26% to its net asset value (NAV).

🎈Kaiko researchers suggest that once ETHE transitions to a spot ETF, it's "reasonable to expect" outflows or redemptions as this discount narrows. Will Cai, Head of Indices at Kaiko, commented that the SEC’s approval of spot Ether ETFs implies the agency views the underlying asset as a commodity rather than a security, which has significant positive implications for regulating similar tokens in the U.S.

🎯The likelihood of SEC approval became more evident last week after several issuers amended their filings to exclude staking. On May 20, Bloomberg even increased the approval odds from 25% to 75%.

🏁Meanwhile, Grayscale’s Ether Trust (ETHE) discount has narrowed since the SEC initially approved spot Ether ETFs on May 23, though ETHE has yet to begin trading as a spot ETF.

🔍Kaiko analysts highlighted that GBTC’s outflows were offset by inflows into other Bitcoin ETFs by the end of January. They concluded that even if inflows into Ether ETFs “disappoint in the short term,” the approval is significant for ETH and could significantly shift market sentiment toward the asset. 🎉🎉