How big will the selling pressure be after the ETH spot ETF is approved! Will it repeat the mistakes of BTC?
The SEC has officially approved the ETH spot ETF, and will complete the first ETFs transaction within 24 hours. Will the ETH spot ETF become a continuous selling pressure after the landing of the good news? Will it repeat the large-scale outflow like BTC?
First of all, let me directly state the point of view. We cannot compare BTC ETF with ETH, and the similarities between the two are actually not great. The scale of ETH ETF will not be as large as that of BTC, and may reach 20%-30% of the volume. Investors are also not as large as BTC, but at the same time, it is the best strategic product for institutions to choose besides BTC. Everyone knows that after the BTC spot ETF gradually matures, the spot of ETH is a potential new driving force and a new investment target.
Although ETH may face selling pressure and market crash in the short term, most of the selling pressure also comes from Grayscale, but through the example of BTC, we can see that Grayscale's management fee is too high, and BTC flows out to ETFs with low management fees such as BlackRock and Fidelity. This outflow is essentially a left-hand-to-right-hand operation. According to the data, the fee rate of Grayscale's Ethereum ETF remains at 2.5%, while the management fee rates of other institutions except Grayscale remain between 0.19%-0.25%. It can be said that most of them provide fee reductions, and even completely waive the handling fee in the first 6-10 months.
At the same time, we can also see from the inflow and outflow trends of Bitcoin spot ETFs that although GBTC outflows are large, as of July 22, the net inflow of Bitcoin spot ETFs has exceeded US$17 billion. And from the perspective of the coin price, in fact, at the current price of 6w6, the selling pressure has not had a special impact on the BTC price, but has become a more stable investment option.
Therefore, we do not need to worry about the selling pressure, which is a big negative for ETH or even the entire market. However, it is undeniable that the short-term flight of whale funds and the transfer of ETH by Grayscale will still cause possible panic, but the wave of smart money or the negative impact released will undoubtedly give us a better opportunity to make the final layout of this bull market. $BTC $ETH $BNB #以太坊ETF批准预期