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Grayscale has set the fee for its Ethereum Trust (ETHE) at 2.5%, significantly higher than competitors such as BlackRock, whose fee is around 0.2%. This decision has raised concerns about potential outflows from ETHE, similar to what was observed with Grayscale's Bitcoin Trust (GBTC). Analysts predict that ETHE could see outflows of 50%-60%, amounting to over $10 billion in assets under management (AUM). In an attempt to mitigate these outflows, Grayscale is offering a new ETH Mini Trust with a lower fee of 0.15%. Additionally, Grayscale plans to divest 10% of ETHE shares into ETH. However, this move is seen as insufficient to counteract the high fees of ETHE, and significant outflows are expected in the coming 3-6 months. ETHE currently has $9 billion in AUM.
Reminder: @Grayscale set its $ETHE ETF fee at 2.5%. Don’t be fooled by their $ETH Mini Trust PR campaign. That fee is irrelevant as it won’t see meaningful inflows for years. @Grayscale’s $ETHE ETF will see aggressive outflows for the next 3-6 months, >$3-5B. Barry is gonna…
Grayscale is trying to limit ETHE outflows by having a mini ETH with 0.15% fee If you hold ETHE you get 10% of your stake in this, the rest in ETHE at 2.5% They want to milk ETHE holders while having a cheaper alternative for new flows It’s dumb just lower ETHE fee https://t.co/p7lAGGeU2m
Grayscale doing an ok job of limiting ETHE outflows GBTC was aggressively sold to the benefit of inflows for Blackrock and others Grayscale’s main ETH ETF fee is still too high though (2.5%), so tbd if this will have an effect at slowing those exiting https://t.co/mQyRLILKdu