Analysts from the research company Kaiko suggest that the capital outflow from the yet-to-be-launched Ethereum ETF by Grayscale will reach $110 million.

After Grayscale converted the Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF on January 11, traders began to massively sell off the fund's shares due to high fees. As a result, in the first month following the conversion into an ETF, the derivative lost $6.5 billion, which accounted for 23% of its assets.

The capitalization of Grayscale Ethereum Trust (ETHE) is estimated at nearly $11 billion, and Kaiko analysts believe that converting the fund into an ETF will reduce this figure by approximately 30% in the first month. This means the average daily capital outflow from the derivative will be $110 million.

In April, ETHE shares were trading at a 26% discount, but in May the difference between the market price of the shares and the value of Ethereum per share decreased to 1.3%. For this reason, Kaiko's assumption that traders will start massively selling ETF shares due to the reduced discount seems unfounded. More likely, Grayscale will maintain significantly higher management fees for its funds, and investors will prefer to invest in competitors' products to save on costs.

Based on the chart, one can observe the change in the market price of ETHE shares (gray line) and the value of Ethereum per share (black line).