Can Ethereum ETF bring capital protection?

Net inflows into US spot Ethereum ETFs may only be 30%-35% of spot Bitcoin ETFs, and the distribution of funds tends to be downward.

At this level, the net inflows in the first six months ranged from $4.7 billion to $5.4 billion. In addition, the beta value of capital inflows and Ethereum's return relative to capital inflows may be lower than the analysis results.

One reason is that although ETH may provide diversification benefits in the long run, this is not the case at present given its different and broader use cases.

Investors who may buy spot ETFs (rather than their respective tokens) may consider Bitcoin and Ethereum similar enough to allocate their allocations to the two cryptocurrencies rather than treating them as different assets.

This means that Ethereum may see inflows specifically for Bitcoin ETFs rather than additional allocations.

Compared with the 9 billion selling pressure in Mentougou, it is far from enough, but if the inflow of Bitcoin ETF is added, it will be almost the same. If the coins in Mentougou are sold for a long time, the impact on the market will be smaller and smaller.

Coupled with the interest rate cut in September and the subsequent election. If the Mentougou frame is smashed and a waterfall is created, we should be happy at this time because we can buy cheaper chips and pick up cheaper goods.