Crypto research and data firm Kaiko said there could be significant outflows from Grayscale’s fund following the approval of Ether spot ETFs in the US.

Kaiko analysts said in their latest report, “With this approval, the SEC has recognized that Ether without staking is not a security, but a commodity. This approval is not only an opportunity to access ETH, but also has important consequences for tokens similar to it.”

“Outflows from the Grayscale fund could reach $110 million”

Stating that the asset value under the management of ETHE, Grayscale’s Ether fund, is $11 billion, Kaiko analysts stated that there may be serious outflows from this ETF after the funds are opened for trading, as in the Bitcoin spot ETF:

“The ETHE fund holds $11 billion in assets. It is by far the largest Ether fund. After GBTC was converted to ETF, there was an outflow of $6.5 billion in one month. This was 23% of the total value of the fund. If ETHE were to sell at the same rate, that would mean an average daily outflow of $110 million. Of course, it is not possible to know the total market impact of outflows here, along with inflows in other funds.”