Daily Coin:
The Ethereum spot ETF has been approved by the SEC. As we said yesterday, ETH has not been identified as a security! But the S-1 document still needs time for approval, which means that the listing time will be delayed, and it may be delayed for a long time. As for the impact, we will talk about it in detail later.
The net inflow of Bitcoin ETF on May 23 was 19 million US dollars, 283 coins, and the inflow was slowing down, and there was no large outflow.
As for the possible performance after listing, now that it has been determined that the S-1 document is approved later, there may be a problem of the order of listing, which is very different from the spot ETF of Bitcoin at that time. At that time, Bitcoin was listed together, because there was a problem of Grayscale switching from ETHE to ETF. Grayscale held 2.93 million ETH. If it really sold like GBTC at that time, the market would not be easy to accept.
Today, I studied it carefully again. Since Grayscale applied for a mini Ethereum trust fund, which is a spin-off of ETHE, it roughly means that retail investors can buy and redeem with a smaller amount. Perhaps this change was made to reduce the selling pressure after listing, but because Grayscale needs to pass the S-3 document for approval, which is different from the S-1 of other institutions. So the conclusion is that Grayscale is likely not to be listed with other fund management institutions, but may be postponed. If this is the case, then the selling pressure at the beginning of the listing may not exist, and there will only be inflows at the beginning. However, these are all speculations, and everything depends on how the SEC operates.
As for the inflow of Ethereum ETF, it is obviously not as good as Bitcoin, this is certain, and with the inability of holding institutions to pledge ETH to obtain additional income, it is likely to reduce investors' investment interest in Ethereum spot ETFs again. After all, the additional annualized 4% income is quite attractive.
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Market interpretation
The good news of ETF has landed, and the second cake fell first. A violent pin inserted 7 points in 5 minutes, which killed all the leveraged positions. Even if it is not listed, it has become a selling reality. The good news has turned into bad news. Many whales also started selling yesterday, but the bad news is only temporary. The long-term good news is certain, because after all, there is an inflow of new funds, so holding positions is still the main theme. It depends on when it will be listed.
Bitcoin has become a trend follower these days, and it has almost come back. It has topped 72,000 for the fourth time and has not passed it. It should be considered a very bad trend. Just consider it a waste of holding Bitcoin this week. The election and interest rate cuts can affect the market in the future.
There is no need to mention the copycats. Basically, they went up and down the same way. This week was a waste. I originally said that I would sell some copycats that I bought at 413 to reduce my position when Bitcoin reached 70,000, but I did not achieve unity of knowledge and action, because many performances were not very good, so I continued to hold the position.
Today's Fear and Greed Index: 74 (Greed)
