Matrixport: The buying structure of Ethereum 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 plummeted to $300 million, and October only saw $600 million, followed by limited follow-up funding.

Recently, the buying structure has been concentrated, mainly contributed by Bitmine. Without new institutional funds entering the market, ETH may continue to consolidate, and a deeper correction cannot be ruled out. Bitmine's 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; its sustainability is in doubt.