Here’s the translation: "Let’s talk about an old topic: the more successful BTC ETFs become, the lower the monetary multiplier within the crypto market. In plain terms, the monetary multiplier refers to how many times the same amount of money can circulate in the market, creating purchasing power. This was the fundamental driving force behind altcoins in previous cycles. As of August 14, the cumulative net inflow into U.S. spot BTC ETFs is approximately $51.857 billion. The market usually interprets these funds as a potential source of liquidity for the entire crypto market: institutions buy BTC first, and after BTC rises, the funds rotate into ETH, SOL, and altcoins. The ETF structure is weakening this pathway. Take IBIT as an example: the fund’s assets are primarily BTC held by custodians. Fund shares are created and redeemed in baskets of 40,000 shares, and regular investors cannot directly exchange their ETF shares for BTC. When cash is used for subscription, the fund or its counterpart converts the cash into BTC; during redemption, BTC is delivered or sold for cash. ETF holders gain exposure to BTC prices but do not actually hold on-chain BTC. These BTC are typically locked within the custody and creation/redemption system, meaning ETF investors cannot use them as collateral to borrow stablecoins, directly participate in DeFi, or naturally flow into altcoin trading pools. As a result, the same $1 billion used to buy BTC can have completely different downstream effects depending on the pathway. If BTC is purchased via spot exchanges, the seller receives stablecoins, which can then be used to buy ETH, SOL, or other assets, allowing the funds to circulate multiple times. If BTC is purchased via ETFs, the funds form a closed loop between fund shares, authorized participants, and custodial BTC, with significantly weaker or even nonexistent secondary purchasing power entering the on-chain market. This creates a new crypto market structure: BTC gains a more stable entry point for traditional funds, while the supply of circulating BTC is compressed. However, the rest of the crypto market loses the monetary multiplier effect that previously relied on BTC’s wealth effect. Therefore, the long-term success of ETFs could lead to two outcomes: 1. BTC’s scarcity increases, and its advantage over altcoins grows. 2. The speed of on-chain credit expansion slows, and the intensity of altcoin rotations weakens. Current data already provides some supporting evidence: BTC ETFs have absorbed over $50 billion, while the total stablecoin market cap has dropped by 0.62% in the past 30 days, remaining at around $300.76 billion. While the ETF fund pool grows larger, the on-chain dollar pool has not grown in tandem, indicating that the two funding channels have already diverged."