Ethereum ETF continues to see inflows but prices do not rise, with several key reasons behind it!
First, ETF inflows do not equate to large-scale institutional buying; retail investors and arbitrageurs may also participate, and there may even be 'bookkeeping operations'.
For instance, institutions may build positions at low prices in advance and then concentrate transfers to custody addresses to create a false impression of buying. True institutions often quietly position themselves through over-the-counter trading, or even use spot purchases in conjunction with shorting contracts to confuse the market.
Additionally, some retail investors short ETH to hedge against altcoin risks, which in turn exacerbates market volatility. At the current stage, the divergence between capital inflows and prices is essentially a result of confused market signals:
ETF net inflows may contain lagging data, hedging positions, or inducive operations.
However, in the long run, sustained capital inflows will eventually drive prices up, but it requires time to settle.
Short-term strategy suggests maintaining flexibility: add to positions on the rise, watch and wait during consolidation, and stop losses during a downturn.
The truth of the market often lies hidden in liquidity games; retail investors' 'hedging' can easily turn into double losses, while faith is less reliable than systematic trading discipline.
Market fluctuations are inevitably confusing, and if operations are not smooth, do not rush. If you are unsure how to deal with being trapped in a position, feel free to communicate, let's clarify our thoughts together and find coping methods.
