Grayscale's ETHE Conversion to ETF Could Trigger Daily ETH Outflows of $110 Million
CryptoNewsTerminal Staff28 May, 2024
Grayscale's ETHE Conversion to ETF Could Trigger Daily ETH Outflows of $110 Million
Grayscale's long-awaited Ethereum Trust (ETHE) could face significant outflows if it converts to a spot exchange-traded fund (ETF), according to a report by crypto research firm Kaiko. Kaiko estimates that ETHE could see daily outflows of $110 million in the month following the conversion, based on the observed outflows from Grayscale's Bitcoin Trust (GBTC) after its conversion to an ETF. The report suggests that the potential outflows could create short-term headwinds for Ethereum's price. However, the long-term impact remains uncertain.
