Bad news keeps coming! ETH Ethereum ETF needs to continue to fall for 25 days! ?
Ethereum ETF suffered a sharp drop on the second day after its launch. At the current selling speed, Grayscale Fund's ETHE needs to continue to fall for 25 days to complete the $10 billion sell-off. If the market can withstand this pressure, we are expected to see Ethereum hit a new high; otherwise, we need to look forward to the arrival of ETFs with pledge functions as soon as possible.
The inflow of funds into the Ethereum ETF lasted only one day, and there was a net outflow of $133 million last night. BlackRock and Bitwise, the main forces of fund inflows the night before, also performed weakly last night, with inflows of only 17.4 million and 29.6 million respectively. In contrast, the outflow of funds from Grayscale ETHE is still high and stable, indicating that the selling pressure in the market is far greater than the buying pressure. This opening performance is similar to that of Bitcoin ETF, but the buying power of Bitcoin ETF is much stronger, with a net inflow of 655 million on the first day, while the Ethereum ETF was only 100 million, and then it was turned off.
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It is known that the selling pressure of Grayscale ETHE totaled 10 billion US dollars. According to the daily outflow rate of 400 million in the previous two days, it will take 25 trading days (about 5 weeks) to complete the selling. However, referring to the rule that GBTC's market crash basically stops after 50%, the large-scale selling of ETHE may end in about two and a half weeks. The next three weeks will be a critical test period for ETH. If the market can withstand the selling pressure, ETH may hit a new high in three weeks; otherwise, the existing ETH ETF is not attractive enough to non-circle capital, and we can only look forward to the emergence of spot ETFs with pledge functions.
