Grayscale’s Spot Ether ETF’s Daily Outflows Could Exceed $100M: Report

Kaiko predicts that Grayscale’s upcoming Ethereum ETF could see significant outflows, potentially averaging $110 million per day.

This projection is based on the observed pattern with the conversion of Grayscale’s Bitcoin Trust (GBTC) from a closed-end fund to an ETF, which saw 23% of its assets under management (AUM) leave in the first month, totaling $6.5 billion.

With an AUM of $11 billion, Grayscale’s Ether Trust (ETHE) could see similar outflows, resulting in an average of $110 million per day, around 30% of Ether’s average daily trading volume on Coinbase. Recent data has shown ETHE trading at a discount of up to 26% compared to its net asset value (NAV) in the past three months.

Kaiko researchers believe that this discount will decrease once ETHE becomes a spot ETF, potentially leading to outflows or redemptions. A similar trend was observed with GBTC, as its discount to NAV significantly narrowed after its conversion.