Avoid.6 million worth of inflows into Farside Investors’ Ethereum Trust Exchange-Traded Fund (ETHA).
Despite an early success compared to BlackRock’s spot Bitcoin ETF that surpassed $1 billion in cumulative net inflows within five trading days, ETHA has been trailing behind. In contrast to the popularity of BlackRock’s product, spot Ethereum ETFs have seen a total outflow of $440 million as a whole.
Grayscale’s Ethereum Trust is leading this trend with a staggering $2.4 billion in cumulative net outflows since its upgrade from a closed-end fund. Analysts attribute part of Grayscale’s decline to the high expense ratio, which stands at 2.5% for investors in the product.
Ethereum Trust competes with other cheaper Ethereum ETFs such as Franklin’s exchange-traded fund (ETF) and Fidelity’s Ethereum Fund, both of which have lower expense ratios at 0.19% and 0.25%, respectively.
Despite these challenges, ETHA achieved early success by contributing to BlackRock becoming the largest asset manager in crypto assets under management (AUM), dethroning Grayscale’s long-held position as the largest cryptocurrency AUM.