About Ethereum ETF before listing

In the field of cryptocurrency, there is a view that many investors lack understanding of basic market logic, which can be seen from the exchange listing events of Bitcoin (BTC) and Grayscale Ethereum (ETH) in Mt. Gox.

In the current market cycle, the investor group led by BlackRock, whose investment costs are roughly between four and six figures, has a relatively consistent price for their Bitcoin holdings.

However, in the Mt. Gox event, the sudden return of Bitcoin, which cost only $600 ten years ago, and the influx of Grayscale Ethereum, which cost only $400, seriously disturbed the price balance of the market.

The 140,000 Bitcoins in Mt. Gox and the 260 Ethereums in Grayscale were held at low prices, becoming the largest holdings and holdings in the market. These low-cost digital currencies suddenly appeared on the market, forcing the market to digest and adjust. As the German government showed when dealing with the confiscation of 50,000 Bitcoins from hackers, when a large number of low-cost digital currencies flood into the market, it may trigger a drop in prices, but will eventually usher in a retaliatory rise after the market has digested them.

It should be made clear that the 50,000 bitcoins held by the German government were sold at one time, while the 140,000 bitcoins held by Mentougou were distributed to individual investors, and most of Grayscale's Ethereum was also held by retail investors. Once these digital currencies are listed through ETFs, retail investors can sell them.

Therefore, the market must first deal with these low-cost Mentougou and Grayscale digital currencies, rebalance prices, and complete a market wash before it is possible to usher in a new large upward cycle. #以太坊ETF批准预期 $ETH