When the Bitcoin spot ETF was launched, the capital allocation in the market was also slightly insufficient. At that time, the market generally believed that the launch of the ETF would cause BTC to fall in the short term, with a "peak at the launch". Therefore, a large amount of funds had already left the market before the launch of the Bitcoin spot ETF, and then bought back when it fell (magnifying the scale of ETF inflows), and when the ETF showed good liquidity, some shorts had to cover their positions. The data proves that before the Bitcoin spot ETF started trading, the size of BTC's open interest actually declined.
The situation of the Ethereum spot ETF is completely different. Before the launch of the ETF, the price of ETH had reached 4 times the low point of this round, while the price of BTC at that time was only 2.75 times the low point. In the derivatives market, the size of ETH open interest (OI) in cryptocurrency native exchanges has increased by US$2.1 billion, bringing the size of open interest close to the historical high. This means that many traders familiar with cryptocurrencies, after seeing the success of Bitcoin ETF, also expect ETH to achieve the same effect and make corresponding arrangements.
But in my personal opinion, the expectations of cryptocurrency practitioners may be too high, and this expectation does not match the actual preferences of traditional financial markets. People who focus on the crypto field for many years usually have a high level of attention and trust in Ethereum, but in fact, in the eyes of many capital groups in non-cryptocurrency fields, Ethereum is much less attractive as a key asset.
