Yesterday, I carefully studied the operational mechanism of mainstream ETH-ETFs again, as well as their possible impact on market prices.
1. ETF trading revolves around NAV. The subscriptions and redemptions of ETFs around spot prices fluctuate based on the premium rate of NAV.
2. Due to regulatory reasons, BlackRock will not purchase any ETH on the market. Subscriptions and redemptions during the trading hours are settled uniformly after the market closes. However, to legally maintain ETH reserves, purchases of ETH spot will be completed within a few days.
3. BlackRock's ETH purchases and redemptions are aimed at Wall Street APs. The purchasing channels on Wall Street are unknown, but they are very wild and not limited to exchange spot. Their trades may not directly affect the exchange market price.
4. The cost of Wall Street APs is untraceable. Wall Street is an arbitrage institution, only buying the dip, not the peak. So it is just the right time to sell inventory from the beginning of the year to BlackRock.
6. Grayscale's ETHE is in a state of long-term redemption, meaning that regardless of the market price, it is all about reducing positions. Is it the madness of management fees, or do mainstream institutions not have faith in ETH? Please consider for yourself.
7. Let's take a look at BlackRock's flashy operations now.
1. Overall, BlackRock's style is buy, buy, buy. I'm a retail investor, who am I afraid of? I've got money, so I can be willful, which is understandable...
2. In the last two weeks before December of last year, BlackRock frantically subscribed with net inflows, buying at the peak, then volume dropped, starting a long decline. BlackRock, refusing to back down, kept buying the dip, crying tears of frustration while doing so...
3. By February-March of this year, BlackRock finally couldn't hold on anymore. In the $1000-$2000 range, they made frantic redemptions and cut losses... demonstrating what it means to be a retail investor.
4. The current situation is that two weeks ago, BlackRock already significantly increased their positions. Last week was flat. This week should be less than two weeks ago. From the inflow situation, it perfectly replicates the flashy operations of last December. Everyone, as a retail investor, can you be more professional than BlackRock?
There are 11 days left until the long position bomb explodes. Are you ready?
