What is the impact of Ethereum spot ETF on the market?

Source: Daoshuo Blockchain

In the comment area below the article "Milestones of Ethereum Spot ETF" on May 4, a reader asked such a question:

Why didn't the price of Ethereum rise sharply after this news was passed?

I remember that many media in the circle had articles discussing this issue that day, and there were many explanations given by each company. The more typical ones are the following two:

For example: Once the news becomes a fact, the market may have overreacted, causing the price of Ethereum to fall. Therefore, investors may choose to sell Ethereum after the news is announced to make a profit or avoid risks.

Another example: This news only means that the relevant regulatory documents have been approved, but the spot ETF cannot be traded now. It is necessary to wait for the S1 document to be approved before the off-site funds can enter the market for trading, so this positive news cannot be implemented now, and the price of Ethereum cannot rise for the time being.

......

These explanations may make sense, but sometimes they don't, because we often see other similar financial events, asset prices are driven by favorable factors and rise sharply.

So short-term market fluctuations stimulated by such news are often difficult to predict.

I think as an ordinary investor, there is no need to pay too much attention to the short-term rise and fall of the market brought by such news. You just need to know that this news will definitely benefit Ethereum and the entire crypto ecosystem in the medium and long term.

And we don't need to wait too long for this medium and long term. I believe that in the next few months or even half a year, we will most likely see the realization of this benefit.

Seeing this question, I thought of a situation that I often encounter in investment, which is also related to short-term market fluctuations:

I am optimistic about the medium and long-term trend and price potential of a token, so I bought this token. But after I bought it, the token not only did not rise in the next period of time, but continued to fall, and only started again after a period of hesitation.

I thought it was just my special case, but recently when I read Duan Yongping's investment sharing, I found out that Duan Yongping also often encountered this situation. Not only Duan Yongping often encountered it, but even Mr. Buffett often encountered it.

Mr. Buffett also had a special discussion on this, which roughly means: It is foolish to expect the stock you are optimistic about to rise in price immediately after buying it.

At this moment, I suddenly realized that this is the norm for many investors (including top investors), not just me.

This further shows that in this market, except for a few geniuses, no one can accurately predict the short-term fluctuations of the market in the long term.

Even top investors do not have such ability, and as ordinary investors, we don't need to spend time guessing such fluctuations.

I remember that in the articles in the circle that day, in addition to a lot of analysis on why the price of Ethereum did not rise, the most common thing was how much the Ethereum liquidation amount was-------I guess nine out of ten of them were caused by betting on this fluctuation in the wrong direction.

Both Buffett and Duan Yongping have clear operations for this phenomenon: completely ignore such short-term market fluctuations and always focus on the fundamentals of stocks and medium- and long-term benefits.

I think this principle is also applicable to crypto assets.

So, when we see this news, the first reaction in our minds should not be how the price of Ethereum will change after the news comes out, but to speculate on what kind of impact Ethereum and even the entire crypto ecosystem will have in the upcoming bull market.