Since the approval of Bitcoin and Ethereum ETFs, the cryptocurrency market has undergone changes over nearly two years. Through long-term observation, we have found that the trading behavior of ETFs differs from expectations, exhibiting some interesting characteristics.

First of all, the trading model of the ETF does not show obvious regularities, and surprisingly, its trading behavior is quite similar to that of retail investors. In terms of Bitcoin, when the price rises slowly, the buying power of the ETF is relatively small; however, when the price rises sharply, the buying power significantly increases. Similarly, there will also be some degree of buying during a decline, but if the drop is too large, selling will begin.

It is worth noting that the buying behavior of ETFs does not directly determine the price direction of encryption currencies. The market remains highly sensitive to news and external factors, and even in cases of significant ETF purchases, if negative news arises, the price may still drop significantly.

This phenomenon makes it more difficult to predict the market, as the operation of ETFs seems to be more akin to the behavior of retail investors chasing gains and cutting losses, rather than the institutional investment strategies we usually expect.

However, one thing is certain: the introduction of the ETF has indeed raised the price floor of Bitcoin and Ethereum. This provides a certain level of price support for these two major encryption currencies, enhancing market stability.

Overall, the impact of ETFs on the cryptocurrency market is complex and multifaceted. It has neither drastically changed market dynamics as some had expected, nor is it completely irrelevant. On the contrary, it has introduced new variables and opportunities to the market, while also highlighting the uniqueness and unpredictability of the cryptocurrency market. In the future, as more data is accumulated and analyzed, we may be able to better understand the role and impact of ETFs in this emerging market.