When Wall Street giants begin to vote with cash, the rules of the crypto market change.

In the past 24 hours, institutional funds 'exploded' to purchase $1 billion of the US spot Ethereum ETF, setting a historical record—this isn't the small-scale retail market but traditional financial giants like BlackRock and Fidelity rushing in with real money! Today, let's talk plainly: what does this wave of operations mean for the crypto market? How should retail investors keep up with the pace?

How fierce is the institutional 'money throw'? The data speaks!

A single day of $1 billion: equivalent to buying the entire Ethereum network's daily 'minted' coins 170 times!

BlackRock 'dominates': its ETHA attracted $640 million in a single day, accounting for a large share, while Fidelity's FETH contributed $270 million; the two giants together 'scooped up' $900 million, leaving the remaining 8 ETFs to share the last $100 million.

Grayscale's 'Mini ETF' rises unexpectedly: Grayscale's newly launched ETH saw a daily inflow of $66.57 million, five times more than the old ETHE, indicating that retail investors are also 'getting on board' through compliant channels.

Long Ge's view:
This wave of capital inflow is definitely not a 'flash in the pan'. Compared to Bitcoin ETF, Ethereum ETF now looks more like a 'new stock listing'—institutions are still in the accumulation phase, and prices have not fully reflected the enthusiasm for funds. Once BlackRock, Fidelity, and other giants' holdings exceed 10%, the pricing power of Ethereum may shift from retail investors to institutions.

What impact does this have on the crypto market?

Ethereum's 'de-retailization' accelerates:
Institutions buying ETFs means they indirectly hold Ethereum but won’t trade directly on-chain. This means:

The ETH in circulation on-chain will decrease, and the supply-demand imbalance may push up prices.

If retail investors continue to 'buy high and sell low' as before, they may be 'rubbed down' by the long-term funds of institutions.

Bitcoin 'loses favor', Ethereum 'rises':
Recently, the inflow of funds into Bitcoin ETFs has noticeably slowed, while the proportion of Ethereum ETFs surged from 12% in June to 34% in August. Institutions are 'rebalancing'—shifting from Bitcoin's 'digital gold' narrative to Ethereum's 'ecosystem + application' narrative.

Are Layer2 tokens about to 'take off'?
With institutions buying a large amount of ETH, the mainnet may become congested, and at this time, the value of Layer2 solutions like Arbitrum and Optimism will become apparent. It's like a traffic jam on the highway; the side road becomes more valuable.

What should retail investors do now?

Prioritize buying ETFs, don't trade coins directly:
Institutions are all buying ETFs, indicating that this is a 'compliant + safe' entry point. Retail investors who are afraid of being hacked on-chain or don't want to pay high transaction fees can simply buy BlackRock's ETHA or Fidelity's FETH.

Focus on Layer2 and Ethereum ecosystem projects:
Institutions buy ETH to 'bet on the ecosystem', retail investors can look for projects that are 'riding the wave'. For example:

ARB/OP: Layer2 leader, after institutional funds flow in, usage will surge.

ENS: Ethereum Name Service, as institutions hold a large amount of ETH, the demand for domain registration may increase.

LDO: Lido protocol token; if institutions choose to stake ETH, they may use Lido's liquid staking solution.

Don't chase highs, wait for a pullback:
Although bullish in the long term, a single-day inflow of $1 billion may overshoot the short-term market. If Ethereum rises to $4400 and then falls back, it might be wise to wait for a drop to around $4150 to add to positions.

Institutions' wallets never lie—when BlackRock and others start to 'go all in' on the Ethereum ETF, the only thing retail investors need to do is not to get left behind. The current question is: do you want to be a 'bystander', or do you want to hop on this wealth train led by institutions?

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