Judging from the various operations the United States has done in the financial market, the most important task for the United States now is to return the US dollar, drain liquidity around the world, squeeze out the US dollar bonds of other countries, and complete the harvest. Why did the United States approve the ETH ETF so anxiously this time? No matter how you think about it, it always seems to be not simple.
1
Bitcoin ETF & Ethereum ETF
Since its listing, the asset size of Bitcoin ETF has reached 55 billion US dollars. I checked that Germany's foreign exchange reserves are only 37 billion US dollars, and Canada's foreign exchange reserves are 93.6 billion.
How many students still remember this information: Some Chinese institutions did not directly purchase Hong Kong's BTC ETF when purchasing Bitcoin ETF, but took US dollars to the United States to purchase American ETFs.
It can be seen from this that the power of Bitcoin ETF to absorb US dollars is not small. This time, I believe that the rush to launch Ethereum ETF is not a matter of personal preference. There must be deep-seated political factors. Absorbing US dollars is the most reasonable explanation!
2
The US dollar has been slow to cut interest rates. The US dollar can no longer raise interest rates, but the interest rate cut has been delayed. As long as there is no large-scale unemployment in the United States and no obvious signs of recession, I believe that it will continue to drag on and not cut interest rates.
High interest rates are the simplest and most effective way to attract deposits. Funds are all profit-seeking. When the interest rate in your country is particularly low, funds will naturally find ways to borrow money from their own country, and then exchange it for US dollars to go to the United States for arbitrage.
3
The US stock market bubble continues, and the dosage should be increased
This should be very confusing to many people, and I was the same. US inflation remains high & interest rates are so high & there are recession expectations & the Federal Reserve is still locking the balance sheet, why can US stocks continue to rise.
My explanation is that the reason why US stocks continue to rise wildly is also the way for the Americans to absorb US dollars. In the case of generally lower and lower returns on global assets, especially Chinese real estate, funds will always look for the most stable and profitable place. Most people think about going to the United States to buy US stocks
In summary, letting the US dollar flow back is still the core task of the Americans, even higher than their own politics and values.
The next judgment is important:
The Ethereum ETF will not be delayed for a long time and will be launched soon. It is necessary to observe the asset scale after the launch to see if it can achieve the purpose of absorbing US dollars. If it also performs well, then doge etf and sol etf will be launched soon.
