Surge in Ether ETF Trading Amid Market Volatility
US exchange-traded funds (ETFs) tracking Ether witnessed unprecedented trading volume on Monday, driven by liquidating leveraged positions as trade tensions under President Trump escalate.
Led by BlackRock's iShares Ethereum Trust, nine Ether ETFs collectively traded $1.5 billion. Ether, the second-largest cryptocurrency, plummeted 27% to $2,135, triggering over $600 million in liquidations on perpetual futures markets.
US investors capitalized on the decline, investing $84 million into Ether ETFs. Open interest in Ether futures on CME Group Inc. rose 6%, indicating institutional engagement.
Analysts cite Ether's exposure to decentralized finance markets as a factor in its volatility. As of 11:00 AM GMT Tuesday, it was trading near $2,767.
The selloff partially recovered after the Trump administration reached a temporary deal with Mexico and Canada, postponing tariffs. However, sentiment reversed with new tariffs imposed by China and the US.
The market downturn underscores Trump's impact on crypto markets. Despite initially rallying after his election, most top digital tokens have since declined significantly.