Recently, the flow of funds into ETFs has become a focal point in the market. Bitcoin spot ETFs continue to record net inflows, especially noticeable in the past few days. Although giants like BlackRock have reduced some positions, the overall capital flow remains positive. The performance of Ethereum ETFs is similar; despite some divergence among institutions, overall money is still flowing in.

What does this mean? The core point is—institutional investors' demand for crypto asset allocation is real, not short-term speculation or follow-the-trend behavior.

But I recently observed an interesting phenomenon. On social media, retail investors are generally extremely optimistic, shouting daily that the bull market is here, going all-in, and so on. Meanwhile, institutional actions are on a completely different rhythm—gradually entering, slowly deploying, and some even reducing positions when the timing is right. What’s behind this disconnect? Usually, there are two scenarios: either smart money is waiting for a better entry point, or they are locking in some profits in advance.

We’ve seen many such cases in history. When retail sentiment is extremely high and everyone is bullish, a short-term top is often imminent. So my straightforward approach is: follow the institutions, buy on dips in batches, and never chase the rally.

From a longer-term perspective, the significance of ETFs might be underestimated. It’s not just a catalyst for short-term price fluctuations; more importantly, it opens the door for compliant investment in crypto assets. This will gradually reshape the composition of market participants—from speculation-driven to allocation-driven—and the underlying logic of the market will also change accordingly.