The 21Shares Ethereum ETF, which trades as TETH, reported $48.4 million in TETH redemptions during the first half of 2026 and ended June with 86.42% of its ETH holdings staked, according to an Aug. 14 quarterly filing. The redemption total covers completed activity; the June 30 staking ratio exposes future settlement to the timing of Ethereum’s unstaking process.
For the six months ended June 30, TETH redemptions generated $48.426 million in distributions for redeemed shares against $42.174 million of contributions for new shares. Using the filing’s unrounded figures, redemptions exceeded contributions by $6.251 million. The trust sold 21,125.2745 ETH for $48.426 million of cash redemptions during the period. The filing records completion of that activity without identifying a failed, delayed or suspended order.
A hidden “yield war” has begun in Ethereum ETFs, forcing issuers to finally pay you for holding
Grayscale turned Ethereum’s staking yield into something ETF investors instantly recognize: a cash payout.
Following the TETH redemptions, the fund’s net assets fell from $31.298 million at the end of December to $12.917 million at June 30. Several reported changes contributed to that result: shares outstanding declined from 2.11 million to 1.64 million, ETH’s reference price fell 46.89%, and the trust recorded a $12.769 million realized loss on ETH sold for redemptions. Net asset value per share dropped from $14.83 to $7.88.
At quarter-end, the trust held 8,185.4684 ETH. Applying the disclosed 86.42% staking share gives approximate balances of 7,074 ETH staked and 1,112 ETH unstaked. Those quantities are derived from a rounded percentage. The filing’s latest balance sheet stops at June 30.
The quarter-end figure was also far above TETH’s average staking exposure during the reporting periods. The fund reported a 31.64% daily staking average for the second quarter and 27.32% for the six-month period.
Staking makes the composition of TETH’s holdings a timing issue for future TETH redemptions. The trust says staked ETH cannot be moved or traded during a variable unbonding period and warns that temporary lockups or transfer restrictions could limit its ability to meet redemptions. Only authorized participants can place orders directly with the trust, in baskets of 10,000 shares or multiples. Ordinary investors generally trade individual TETH shares on the exchange.
Broader spot Ethereum ETF flows have supplied a volatile backdrop. CryptoSlate reported in June that the products had recorded four straight withdrawal weeks totaling more than $870 million. One $19.3 million inflow day interrupted a 17-day outflow stretch.
A new wave of TETH redemptions would test the size and timing of authorized-participant orders against the ETH available outside staking at that moment, plus the speed at which additional ETH could be released. TETH’s 86.42% quarter-end ratio shows concentrated exposure to that timing trade-off. The filing documents a prospective constraint while recording completed first-half redemption activity.
Be the first to comment