Can the Ethereum ETF withstand the repayment pressure of Mentougou?
The Ethereum ETF passed on July 23, and the net inflow may be only 30% to 35% of that of the Bitcoin ETF, and the capital flow trend is biased downward. Ethereum's funds may not be as much as the Bitcoin ETF.
Specifically, the net inflow of the Ethereum ETF in the first six months is estimated to be between 4.7 billion and 5.4 billion US dollars. Although this figure is not low, it may still be too small compared to the size of the market. Among them, the beta value (i.e., the return sensitivity index) between the capital inflow and the price performance of Ethereum may be lower than expected, which means that the inflow of funds has not effectively boosted the market price of Ethereum as expected.
The main reason is that when everyone has sufficient funds, more people prefer to buy BTC. Ethereum's recognition is not as much as imagined.
Although the net inflow of funds for the Ethereum ETF in the short term is limited, it still has good opportunities for the market. Compared with large-scale sell-offs such as Mentougou, the inflow of funds from the Ethereum ETF is not enough to directly offset these selling pressures, and only other funds can enter the market together to offset them. Perhaps, only by waiting for interest rate cuts and presidential elections can more funds enter the market!
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