The main problem is that Grayscale is dumping stocks, institutions are constantly changing hands, short-term speculators in CEM are running away as soon as they make a profit, and retail investors are also frightened and selling in a panic. In the final analysis, the pressure to sell is too great.
You know, Grayscale's Ethereum spot ETF had a net outflow of $480 million on the first day, and there is a huge amount of money coming in.
After the Ethereum ETF was approved last week, the net inflow exceeded $1 billion in one week, while Grayscale's Ethereum ETF saw an outflow of $1.5 billion, accounting for 50% of the total trading volume, half of which was absorbed by BlackRock. This start is very similar to the Bitcoin ETF, but you know how Bitcoin will perform in the future.
Grayscale sold nearly 1 million ETH in two weeks. Judging from the market, the market's digestion capacity is still very strong.
Most of the sold ETH will flow back into the market in another way in the near future.
Compared with the eye-catching ETH data, the BTC data is slightly worse, especially BlackRock's large purchases of ETH, but the purchasing power of BTC is insufficient, which also led to the end of the four-day net inflow of BTC spot ETF in both the United States and the world, and turned into a net outflow.
Ethereum's big possibility is really coming
Ethereum’s Upcoming Catalyst
I want to talk about two important catalysts that Ethereum is about to usher in
The first is the approval of Ethereum ETF staking:
This could significantly increase demand for spot Ethereum ETFs. While an annual ETH staking yield of around 3.2% may not seem like much, the fact that ETH has a lower annual inflation rate and the benefits of staking may make ETH more attractive to some institutions than BTC
According to the SEC Commissioner, the Ethereum Collateral ETF “can always be reconsidered”, so its approval is just a matter of time
The second catalyst was the launch of Pectra:
This is the next hard fork for Ethereum. This major upgrade is expected to take place in late Q4 of this year or Q1 of 2024.
Pectra will introduce several breaking changes:
Making Ethereum account addresses more programmable
Increase the maximum stake for ETH validators from 32 to 2048 ETH
By making Ethereum account addresses more programmable, Pectra will bring significant on-chain user experience improvements
For example, it will support batching transactions, develop social recovery features for wallets, and allow dApps to pay users’ gas fees. Such user experience upgrades are what cryptocurrencies need to achieve mass adoption.
Ethereum ETF achieved positive inflows on the sixth trading day, and Ethereum returned strongly
In the next two months, Ethereum ecosystems such as ens, people, and pepe are promising and have great opportunities.
Every pullback of Ethereum is an opportunity, start planning
If you can’t find your way, you can ask May to escort you.
The focus has shifted back to the macro level
There is another non-farm data on Friday, which also needs attention. In addition, Japan's interest rate hike has already occurred. Although it is a relatively negative data, the rate hike is not large and the market has had enough expectations, so there is almost no impact. US stock futures are rising quite well now.
In addition, the financial reports of Coin and MSTR will be released after the U.S. stock market closes on August 2. If they are positive, it will also be helpful to the market.
