As of April 18, 2025, spot Ethereum ETFs have experienced a significant downturn, with assets under management (AUM) hitting an all-time low of $4.57 billion. This reflects a concerning trend of seven consecutive weeks of net outflows, totaling a staggering $1.1 billion withdrawn from these investment vehicles.
Grayscale's ETHE has been particularly affected, witnessing substantial outflows. This is likely due to its relatively high management fee of 2.5%, which contrasts sharply with competitors like BlackRock, offering a lower fee of 0.25%. Investors appear to be migrating to these lower-cost alternatives, especially as lock-in periods expire.
In contrast, Bitcoin ETFs have demonstrated greater resilience, maintaining a stronger grip on AUM despite overall market volatility. Several factors contribute to investor hesitancy towards ETH ETFs, including Ethereum's complex value proposition and the SEC's cautious approach to staking. The SEC has delayed decisions on Ethereum ETF staking and in-kind redemption until June 2025. This uncertainty, coupled with potential new crypto ETF filings, could further dilute institutional capital allocation in the Ethereum space.