BIT: ETF fund flows are dominating Ethereum’s price movements

Odaily reported that BIT has released its latest analysis chart, indicating that Ethereum’s recent price movements are increasingly dominated by ETF fund flows. Over the past year, the 30-day moving average of daily net inflows into ETH ETFs has been highly correlated with ETH’s price movements, suggesting a significant increase in Ethereum’s sensitivity to institutional capital flows.

BIT points out that one of Ethereum’s core current narratives is the net staking yield of approximately 2.5%. However, against the backdrop of accelerating inflation again and the US 10-year Treasury yield rising above 4.6%, the advantage of Ethereum’s staking yield compared to risk-free assets like US Treasuries is diminishing.

Furthermore, Ethereum ETFs have experienced renewed capital outflows since May. BIT believes that if this trend continues, Ethereum will likely maintain a volatile and consolidating trend.