Ethereum ETFs Surge Amid Market Turmoil, Attract $84M in New Investments

Generado por agente de IACoin World
martes, 4 de febrero de 2025, 3:46 pm ET1 min de lectura
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Ethereum ETFs See $1.5 Billion Trading Volume as Investors Buy the Dip

Ethereum ETFs experienced a record trading volume of $1.5 billion on Monday, as investors took advantage of the market downturn to buy the dip. This surge in trading activity comes despite the broader market turmoil and leadership crises within the Ethereum community.

The nine Ethereum ETFs saw a significant increase in trading volume, with a net inflow of $84 million from new investors. This trading volume is becoming increasingly decoupled from the price of Ethereum itself, as the community grapples with internal leadership issues and shaken public confidence.

Ethereum has been facing challenges lately, with declining user counts and falling prices. However, the recent tariff threats from Trump brought additional shocks to the crypto market. Despite these headwinds, ETF investors showed resilience by buying the dip in large numbers, leading to the record trading volume.

Essentially, the broader market shocks triggered panic-selling, stop-loss triggers, and forced liquidations. As a key asset for the DeFi space, ETH is vulnerable to swings from overall leveraged trading. These outflows pumped up the ETFs’ trading volume, and Ethereum delivered net inflows, including $84 million from new investors.

After these complicated actions, Ethereum’s price somewhat recovered from Monday’s early market crash. However, the leading altcoin has been struggling for a few different reasons, feeding price concerns. Meanwhile, Ethereum ETFs also have a few bullish factors under their belt. They set a new record for inflows in December, attracting more than $2 billion in institutional interest despite a flagging price.

This trend continued throughout January, with heightened ETF trade despite widening cracks in the Ethereum Foundation. Additionally, a few outside factors helped juice this rally. Donald Trump’s son, Eric Trump, encouraged his followers to invest in Ethereum via social media. “In my opinion, it’s a great time to add ETH,” Eric Trump posted.

Open interest in ETH futures contracts on the CME also climbed around 6%, signaling institutional interest. Together, these revenue streams helped guarantee big gains. Ultimately, Ethereum ETFs are doing well, but the underlying asset’s broader future is still uncertain. Community turmoil is causing serious cracks in the asset’s support

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