Ethereum, Bitmine, and ETFs
Ethereum at 2 507 $ : if Bitmine stops buying, who steps in?
Ethereum traded around 2 507 $ on October 10, down about 6.9% for the week (CryptoTicker, 18:49 UTC).
The context: Bitmine holds 6,016,414 ETH, or about 4.9% of the circulating supply, and has said it will stop buying at 5%. It added 15,112 ETH last week, worth about $41M. At the current pace, the cap would be reached within six to seven weeks (Memeburn estimate).
Meanwhile, U.S. spot Ethereum ETFs recorded 542.2 M$ in outflows for the week (CryptoTicker), and 24/7 Wall St counts eight consecutive sessions of outflows. Bitmine's weekly purchases amount to about 8% of those outflows (calculated from these two figures).
A caveat: Bitmine also has 5,067,309 ETH staked, earning an annualized yield of 2.63%, with projected annual revenue of about 363 M$ . Tom Lee raised the possibility of selling staking rewards to stay below the cap (Memeburn).
What this means: this is not a sell signal. A marginal buyer is about to leave the market while ETF demand is negative. Citi sees a rebound to 3 028 $ only if ETF flows reverse (24/7 Wall St).
Who will buy ETH from here: ETFs, staking, or nobody?#EthereumSurpasses2500USDT #StateCouncilCallsForNationalBlockchainNetwork
Ethereum at 2 507 $ : if Bitmine stops buying, who steps in?
Ethereum traded around 2 507 $ on October 10, down about 6.9% for the week (CryptoTicker, 18:49 UTC).
The context: Bitmine holds 6,016,414 ETH, or about 4.9% of the circulating supply, and has said it will stop buying at 5%. It added 15,112 ETH last week, worth about $41M. At the current pace, the cap would be reached within six to seven weeks (Memeburn estimate).
Meanwhile, U.S. spot Ethereum ETFs recorded 542.2 M$ in outflows for the week (CryptoTicker), and 24/7 Wall St counts eight consecutive sessions of outflows. Bitmine's weekly purchases amount to about 8% of those outflows (calculated from these two figures).
A caveat: Bitmine also has 5,067,309 ETH staked, earning an annualized yield of 2.63%, with projected annual revenue of about 363 M$ . Tom Lee raised the possibility of selling staking rewards to stay below the cap (Memeburn).
What this means: this is not a sell signal. A marginal buyer is about to leave the market while ETF demand is negative. Citi sees a rebound to 3 028 $ only if ETF flows reverse (24/7 Wall St).
Who will buy ETH from here: ETFs, staking, or nobody?#EthereumSurpasses2500USDT #StateCouncilCallsForNationalBlockchainNetwork