$ETH Institutional Buying Signal Full, Continuous "Capital Absorption" Hides Secrets
Last night, BlackRock's Ethereum ETF (ETHA) absorbed 52.84 million USD in funds, marking the sixth consecutive day that institutions have been pouring money into the Ethereum pool.
Now, the total holdings of these ETFs have piled up to 9.1 billion USD, equivalent to 3% of the entire Ethereum market value being dominated by institutions—it's worth noting that this figure was less than 0.5% at this time last year.
What does a daily inflow of 52.84 million USD mean? It’s equivalent to 36,700 USD being bought every minute. The ETHA product has cumulatively absorbed 4.4 billion USD, which is more than six times that of Grayscale's Ethereum Trust, solidly controlling the pricing power.
Although the overall net inflow is 58.62 million USD, BlackRock alone has consumed 90% of the share. This indicates that institutions are concentrating their firepower on purchasing leading products, while retail investors may still be meddling in altcoins.
Even more aggressive, this capital is specifically entering during after-hours trading in the US stock market, clearly aiming to avoid following retail investors.
Ethereum's price is oscillating around 2,550 USD, but ETF funds continue to flow in, creating a support effect. On-chain data shows that whales are transferring spot assets to ETF custody addresses, indicating that this "left-hand to right-hand" operation is likely preparing for a breakout above 2,700 USD.
In the short term, focus on the 2,500 USD support; as long as ETF funds keep flowing, each pullback is an opportunity to add to positions.
In the medium to long term, betting on the benefits brought by the Pectra upgrade (testnet in June) which is expected to reduce gas fees, this upgrade could lead to a third spring for the Ethereum ecosystem.
Be cautious of redemption pressure on Grayscale ETH; although only 5.78 million USD flows in daily now, it could be sold off first if the market turns cold.
This market situation resembles the replica before the Bitcoin ETF approval in 2021—after institutions have accumulated enough chips, it is highly likely they will use positive news to violently push the price up and clear out leveraged shorts.
But remember, ETFs are not charitable institutions; for every 1 USD they buy now, they will aim to earn 10 USD from retail investors in the future.
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