TETH, the spot Ethereum ETF trust, processed $48.4 million in redemptions in the first half of 2026, according to a quarterly filing made Aug. 14. To fund those cash payouts, the trust sold 21,125 ETH for $48.4 million, booking a realized loss of $12.8 million. Net assets shrank from $31.3 million to $12.9 million over the period, and shares outstanding dropped from 2.11 million to 1.64 million.
The redemptions, by the numbers
The trust took in $42.2 million in contributions, but redemptions outpaced them, leaving a net outflow of $6.25 million. The ETH reference price fell 46.89% over the six months, and NAV per share slid from $14.83 to $7.88. The realized loss on the ETH sold for redemptions was $12.8 million, a reminder that selling into a falling market hurts.
Staking and the liquidity puzzle
At quarter-end, the trust held 8,185 ETH, of which 86.42% was staked. That works out to roughly 7,074 ETH staked and 1,112 ETH unstaked. Staked ETH can't be moved or traded during a variable unbonding period, and temporary lockups could limit the trust's ability to meet redemption requests. The average staking exposure was 31.64% for Q2 and 27.32% for the six-month period, meaning the trust has been increasing its staked share as redemptions piled up.
A tough quarter for Ethereum ETFs
The redemptions come as the broader spot Ethereum ETF market saw four straight weeks of withdrawals in June, totaling more than $870 million. One day brought a $19.3 million inflow, but that only interrupted a 17-day outflow stretch. TETH's own redemptions fit that pattern.
What the filing leaves open
Only authorized participants can place orders directly with the trust, in baskets of 10,000 shares or multiples. That limits who can redeem, but doesn't change the fact that staked ETH is tied up. The filing doesn't say how quickly the trust can unstake ETH or whether it has a buffer of unstaked holdings. With net assets down to $12.9 million, the margin for error is thin. The next quarterly report will show whether the staking ratio holds, and whether the redemptions continue.
