Matrixport: Ethereum buying structure is concentrated, which may lead to a significant pullback

Matrixport published a market outlook stating that the performance of Ethereum ETFs remains subdued this month. Looking back at historical data, July and August recorded strong net inflows of $5.2 billion and $4.3 billion, respectively; September saw a sharp decline to $300 million, and October only reached $600 million, with limited follow-up funding.

Recently, the buying structure has been concentrated, mainly contributed by Bitmine. If there is a lack of new institutional funds entering the market, ETH may continue to consolidate, and a deeper correction cannot be ruled out. Bitmine's fund net asset value (NAV) is slightly above the issuance level, allowing for continued issuance of shares to absorb incremental funds, but this will dilute the rights of existing holders, raising questions about its sustainability.