US Ether ETFs hit a record $1.5B trading volume as Trump tariff fears trigger selloff
The post US Ether ETFs hit a record $1.5B trading volume as Trump tariff fears trigger selloff appeared on BitcoinEthereumNews.com.
US Ether exchange-traded funds (ETFs) experienced record trading volumes on Monday. Leveraged positions in the digital asset fell sharply as most investors offset their holdings due to tariff tensions under President Donald Trump. The group of nine ETFs saw a $1.5 billion trading volume, with BlackRock’s iShares Ethereum Trust nearly capturing half of the market activity. Ethereum, the second largest crypto by market value, dropped by almost 27% to trade at $2,135 on Monday. The drop set off liquidations totaling more than $600 million in perpetual futures markets. US investors grasped the sharp drop, driving $84 million in net inflows into the Ether ETFs. Open interest in Ether futures contracts on CME Group Inc.’s derivatives exchange increased nearly 6%, indicating institutional interest. Ether is vulnerable to leveraged trading dynamics due to its outsized role in DeFi markets Ether’s deep decline is due to its active role in decentralized finance markets, which makes it vulnerable to leveraged trading dynamics. As of 11 a.m. on Tuesday in London, the digital currency was trading at about $2,767. Trump’s administration’s temporary deal with trade partners Mexico and Canada, which delayed the proposed tariffs by one month, saw the selloff slowing down, leading to a partial market recovery. However, the market remained unstable for a while because China and the US imposed fresh tariffs on each other. The fall of cryptocurrency at the beginning of the week shows how Trump has increased uncertainty in the crypto sphere. His moves have created several heart-stopping scenarios. Going by the current state, Trump’s presidency had seen all top digital assets go down sharply, contrary to when he won elections in November when all digital assets rallied. Crypto-centric ETFs of all stripes, including those based on Bitcoin, have seen tremendous investor interest in the wake of Trump’s presidential victory,…
Filed under: News - @ February 4, 2025 4:26 pm