The imminent arrival of Ethereum (ETH) exchange-traded funds (ETFs) may initially cause a decline in the value of the second-largest cryptocurrency by market cap, according to market intelligence firm Kaiko. The US Securities and Exchange Commission (SEC) recently approved the listing of spot market Ethereum ETFs, allowing them to be traded on US stock exchanges. In a new analysis, Kaiko researchers predict that this approval could result in significant daily outflows from Grayscale’s Ethereum Trust (ETHE), which has been trading at a discount of 6-26% over the past three months. The researchers estimate that if similar outflows occur as they did with Bitcoin ETFs, it could amount to $110 million of average daily outflows or 30% of ETH’s average daily volume on Coinbase. However, the researchers also note that inflows into other Bitcoin ETFs offset and surpassed outflows from Grayscale’s Bitcoin Trust following the SEC’s approval in January.