Ethereum ETFs Hit Record Volumes Despite Market Crash

Ethereum ETFs Soar to $1.5 Billion in Trading Volume

Ethereum ETFs – On February 3, U.S. spot Ethereum ETFs set a new record with $1.5 billion in trading volume, surpassing their previous high of $1.22 billion set in December 2022. This surge in volume occurred amid a significant crypto market sell-off, triggered by President Trump’s trade tariff announcements over the weekend. Despite the broader market decline, Ethereum-related ETFs showed resilience, with BlackRock’s ETHA leading the pack, handling $736 million in trading, followed by Grayscale’s ETHE at $415 million and Fidelity’s FETH at $155 million.

Ethereum Suffers Heavy Losses Due to Trump’s Tariff News

Following Trump’s announcement of 25% tariffs on goods from Canada and Mexico and 10% tariffs on energy from Canada and goods from China, Ether experienced a sharp downturn, plunging by approximately 36% to a low of $2,100 on Monday, February 3. In contrast, Bitcoin dropped more than 10%, falling to around $91,500 before recovering. Solana and memecoins, including Trump’s official token, also saw substantial losses, with the latter down by 40% on average.

Ethereum Price Recovery Amid New Tariff Agreement

By the following day, Ethereum had rebounded to $2,819, a 30% increase from its Monday low, along with other cryptocurrencies. This recovery followed reports of an agreement between the U.S., Canada, and Mexico to pause the new tariffs for a month. However, U.S. tariffs on Chinese goods remain in effect, with China retaliating by imposing additional tariffs on coal, natural gas, oil, and agricultural machinery starting February 10.

U.S. Spot Ethereum ETFs Continue to Attract Inflows

Despite the market’s volatility, U.S. spot Ethereum ETFs managed to attract net inflows of $83.6 million on Monday, with Fidelity’s FETH leading the way, securing $49.7 million. Grayscale’s ETHE and 21Shares’ CETH also saw positive inflows, at $12.8 million and $15.9 million, respectively.

Bitcoin ETFs Underperform Amid Decline

In contrast, Bitcoin ETFs experienced lower trading volumes and net outflows of $234.4 million, the largest since the January market sell-off.

As Ethereum’s spot ETFs continue to draw investor interest despite broader market declines, the outlook remains uncertain, with global trade dynamics playing a critical role in shaping investor sentiment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.