Yesterday, $ETH saw an inflow of 455 million, and the premium status is still positive. According to the logic that institutions can arbitrage, there should still be inflows ahead.
The "premium/discount" of an ETF refers to the secondary market price vs. the actual net asset value (NAV). A positive premium means market price > NAV (overpriced), while a negative discount means market price < NAV (underpriced). Institutions have the right to directly create/redeem shares, but retail investors do not.
Arbitrage logic: If there is a positive premium, institutions will "create" new shares—they deliver ETH to the trust in exchange for shares, then sell them at a high market price to profit from the difference! This process will lead to more ETH inflows, increasing supply and gradually narrowing the premium. Conversely, during a negative discount, they buy cheap shares to redeem ETH and sell, causing outflows. #Ethereum #DeFi
However, the market is currently volatile, so be mindful of the risks~ Discussion is welcome! Likes and shares from the bosses are my perpetual motion machine! Wishing the bosses great wealth!
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