Ethereum spot ETF sees another outflow of $150 million! Investment firms optimistic about opening staking feature: just a matter of time

As the nine Ethereum spot ETFs have been trading for the third day, the total outflow of funds has reached $152 million, mainly caused by the significant capital loss from Grayscale's Ethereum trust fund, ETHE. Meanwhile, some ETF issuers are optimistic about enabling open pledge functions to attract more investors.

Yesterday's traffic review: Ethereum spot ETF suffered a net outflow of $133 million on the second day of trading, with Grayscale being the main culprit

Ethereum Spot ETF Sees Another Outflow of $152 Million

Farside Investors data shows that, similar to yesterday, out of nine Ethereum spot ETFs in the market, eight of them experienced net inflows on the third day.

However, Grayscale's ETHE still saw a significant outflow of $346 million, causing the overall market's net outflow to expand to $179 million.

An explanation for why ETHE continues to see outflows: Tech stocks remain under pressure, Ethereum prices plummet, why the rush to sell ETHE?

BlackRock's ETHA Sees Inflow of Over $70 Million

Today, BlackRock's ETHA leads the pack, with Grayscale's ETHW and Fidelity's FETH in second and third place, receiving inflows of $70.9 million, $58.1 million, and $34.3 million, respectively.

However, 21 Shares' CETH faced two consecutive days of zero net inflows, while the fund size of QETH from Invesco was at the bottom as well.

Grayscale ETHE Sees Total Outflows of $1.157 Billion

Grayscale's ETHE sets a new record for net outflows, reaching $346 million, with a total outflow of over $1.157 billion in three days. Currently, over 12.5% of the fund's holdings have been sold off.

Investment Advisory Firm: Staking Feature Will Be Implemented Sooner or Later

Coindesk previously reported that despite the lack of staking feature in these Ethereum spot ETFs, investors still seem very interested in the product.

From the perspective of the U.S. Securities and Exchange Commission (SEC), staking could potentially constitute the issuance of unregistered securities, so it is understandable that the agency does not allow ETFs to generate returns for investors through staking ETH.

However, as Wintermute, a crypto market maker, points out, this has always been a clear disadvantage of holding ETFs compared to holding ETH directly.

Ethereum Spot ETF Opening Soon! Wintermute, Kaiko Pessimistic: Inflows Expected to Be Far Below Forecast

However, investment advisory firms seem to express optimism about this.

ETF Store: Intersection of Politics and Regulation Timing Is Key

Nate Geraci, President of Ethereum spot investment advisory firm ETF Store, said:

I believe it's only a matter of time before staking is implemented in Ethereum spot ETFs. Undoubtedly, the intersection of politics and regulation timing is crucial.

He added, "The regulatory environment is likely to change with the new government in power, and the issuers are hopeful that the staking feature may eventually be allowed."

He revealed that companies like Fidelity and Franklin Templeton had indicated in their applications that they hoped to offer the staking feature to investors, but ultimately had to abandon the idea to facilitate a smooth approval process:

Trump is considered more crypto-friendly, which may expedite the approval process for the staking feature.

On the other hand, Robert Mitchnick, Digital Asset Manager at BlackRock, stated at Bitcoin 2024 that the SEC has clearly expressed its opposition to staking.

No Chance for Solana ETF? BlackRock: Ethereum ETF Unlikely to Open Doors for Other Cryptocurrencies

In conclusion, whether the staking feature will be part of ETFs depends on the future regulatory environment, and ETF issuers are prepared to adjust the product content accordingly as the environment evolves.