The introduction of Ethereum ETFs faces challenges due to concerns over Grayscale’s Ethereum Trust fees and ongoing ETH sales from Ethereum Foundation-related wallets. These factors have contributed to a 0.4% decline in Ethereum (ETH) prices on Thursday. Grayscale’s decision to maintain a high 2.5% fee structure for its Ethereum Trust, similar to its Bitcoin products, has sparked dissatisfaction among ETHE holders and raised fears of increased outflows when ETH ETFs launch. Analysts predict that these outflows could offset potential inflows into other Ethereum ETFs, potentially limiting the upward momentum on ETH’s price.
As of Wednesday, Ethereum ETF issuers have finalized their S-1 registration statements, revealing fee structures for their offerings. The Securities and Exchange Commission (SEC) has also approved 19b-4 filings for Grayscale’s Mini Trust and ProShares Ethereum ETFs, among others, part of the group of ten funds slated for potential launch.
