As the opening of the nine-tier Ethereum spot ETF entered its third day, the overall outflow of funds reached US$152 million, which was also caused by the massive loss of funds from Grayscale's Ethereum Trust Fund (ETHE). At the same time, some ETF issuers are optimistic that the open staking function will attract more investors.
(Reviewing yesterday’s traffic: Tragic! The Ethereum spot ETF saw a net outflow of US$133 million on the second day after its listing, and Grayscale was the culprit )
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ToggleEthereum spot ETF outflows another $152 million
Farside Investors data pointed out that, like yesterday, eight of the nine Ethereum spot ETFs on the market achieved net capital inflows on the third day.
However, ETHE still had a huge outflow of US$346 million due to grayscale, which expanded the overall net fund outflow of the market to US$179 million.
(An article explaining why ETHE continues to outflow: Technology stocks continue to be under pressure, Ethereum has plummeted, why is ETHE eager to sell? )
BlackRock (ETHA) sees over $70 million in inflows
Today, BlackRock's ETHA took the lead, Grayscale's ETHW, and Fidelity's FETH were the runner-up and third, with inflows of US$70.9 million, US$58.1 million, and US$34.3 million respectively.
However, 21 Shares' CETH faced 0 net inflows for two days, ranking last together with Invesco's QETH in terms of managed fund size.
Grayscale (ETHE) had a total outflow of US$1.157 billion
Grayscale ETHE's net outflow reached a new high, reaching US$346 million, and the total outflow in the three days exceeded US$1.157 billion. So far, more than 12.5% of the fund's holdings have been sold.
Investment advisory company: It is only a matter of time before the pledge function is launched
Coindesk previously reported that even though these Ethereum spot ETFs lack the staking function, investors still seem to be quite interested in the product.
Of course, from the perspective of the U.S. Securities and Exchange Commission (SEC), pledging may constitute the issuance of unregistered securities, so it is conceivable that the agency does not allow ETFs to create income for investors by pledging ETH.
But as crypto market maker Wintermute points out, this has always been a clear disadvantage of holding ETFs compared to holding ETH directly.
For investment advisory companies, they seem to express an optimistic stance on this.
ETF Store: The intersection of politics and regulation is key
Nate Geraci, President of ETF Store, an Ethereum spot investment advisory company, said:
I believe that staking in Ethereum spot ETFs is only a matter of time, and there is no doubt that the timing of the intersection of politics and regulation becomes critical.
It added, “The regulatory environment will change with the new government taking office, and the staking function that issuers are looking forward to may eventually be allowed.”
He revealed that companies such as Fidelity and Franklin Templeton had stated in their applications that they hoped to bring the staking function to investors, but in the end they gave up in order to pass the review smoothly:
Trump is considered to be more friendly to cryptocurrencies, which may also speed up the approval process of the staking function.
However, Robert Mitchnick, BlackRock’s head of digital assets, stated at Bitcoin 2024 that the SEC has basically made its views against staking clear.
( Is Solana ETF dead? BlackRock: Ethereum ETF is unlikely to open the door to other cryptocurrencies )
In summary, whether staking functionality will become part of ETFs depends on the future regulatory environment, and ETF issuers are prepared to adjust product content as it changes.
