Today's News Interpretation
On July 23, the U.S. Securities and Exchange Commission (SEC) notified at least two of the eight companies that applied to launch the first U.S. spot Ethereum ETFs that their products could begin trading on Tuesday.
Products from BlackRock, VanEck and six other companies will begin trading on Tuesday morning on three different exchanges: the Chicago Board Options Exchange (CBOE), Nasdaq and the New York Stock Exchange, which all confirmed they are ready to start trading.
The biggest news today is that the Ethereum ETF will be listed and start trading today. Judging from the current market feedback, the reaction is not very intense, and there is not even a final surge, so the most likely thing is the landing of good news. In fact, the most attention should be paid to Grayscale's ETHE. What we know now is that Grayscale's ETHE holds approximately 2.63 million ETH, and its management fee is 2.5%, while its withdrawal fee for the mini trust is only 0.15%. Grayscale's idea of doing this is to allow some long-term inactive funds to remain here, while some more active users transition to mini ETH, so in the early stages, ETHE should still withstand large outflows, but some users should just transition to mini ETH. On the whole, in the early stages of listing, Grayscale's ETHE outflow should be milder than that of GBTC at the time, but relatively speaking, the inflow demand is definitely not as good as that of Bitcoin ETF, which has been confirmed by ETFs in Hong Kong and other countries.
According to some institutions, the lack of staking function will indeed make Ethereum ETF less attractive. Ethereum is more concerned about the application level of blockchain, and Ethereum is a token model with unlimited inflation, which is slightly inferior to Bitcoin in terms of scarcity and financial asset attributes. Therefore, the inflow demand will not be as strong as Bitcoin.
On July 22, Bitcoin ETFs had a total net inflow of $533 million, of which BlackRock IBIT received $526 million. This must be due to the involvement of an institution. Such a large inflow in one day is relatively rare. The rest are in the tens of millions.
Bloomberg ETF analyst said: It is expected that in the next few months, there will be issuers applying for a combined spot ETF of BTC, ETH and SOL. This should be very likely to happen in the future. As we all know, these are now the top three decentralized digital currencies in the cryptocurrency market (BNB is more centralized). I think they can be called the three major cryptocurrency indexes, each leading its own younger brother (ecosystem) to fly. It is very likely to become a normal state in the future, just like every stock market has its own exchange index. So far, Bitcoin is the one that lacks younger brothers the most, but it is very likely that everyone only believes in BTC.
The Mentougou address continued to transfer out 42,587 BTC, worth 2.85 billion. Currently, there are 90,344 BTC in this address. This time it should be in preparation for sorting and compensation. The market fell in response. I found the transfer of the Mentougou address quite interesting. It seems that there is a hand controlling the market. When it is time to fall, the news comes. In short, if this mountain wants to be moved, it should be like Lao Dezi, and it will fall to the ground as soon as it is cleared.
Market Interpretation
Continuing from the above, I really think that the Mentougou address is manipulated by a behind-the-scenes hand, who is trying to profit by spreading negative news. Otherwise, I don't know what the address transfers back and forth are doing. In fact, it was clear this morning that the market was due for adjustment. It will be difficult to break through the 69,000-70,000 range in the short term. I still maintain yesterday's view and will not repeat it.
I think the second cake market will fall first and then rise. Today, the younger brothers have begun to scramble for it, so instead of following the ETF to eat the tail gas, it is better to catch a younger brother and fly.
In terms of cottage
Continuing from the previous article, the E-prefixed coins may perform well in August. Currently, ENS is the most outstanding performer. L2 and other smaller coins may also take the opportunity to make a comeback. The expectations for the L2 ecosystem and some old DEFIs should still be good. The new ones are the re-staking sectors. The Ethereum ecosystem is too large, and which one will run the best and fastest depends on each person's understanding and choice.
Bitcoin Fear Greed Index: 71 (Greed)
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