In a notable turn of events, a planned Ethereum Digital Asset Trust initiative involving prominent investors in Asia has been officially scrapped. This decision has raised eyebrows in the cryptocurrency community, especially considering the potential impact on the market.
Cancellation of Ethereum Trust by Prominent Asian Investors
Recent reports highlighted that key players in the Asian investment scene were preparing to launch an Ethereum trust with substantial backing. This consortium included Li Lin, the founder of Huobi, Shen Bo, the co-founder of Fenbushi Capital, and Xiao Feng, the chairman of HashKey Group.
The initial vision was to acquire a NASDAQ-listed company to support this Digital Asset Treasury (DAT) framework, bolstered by an impressive $1 billion in funding commitments.
However, updates from Wu Blockchain have revealed that this ambitious project has been cancelled. The organization disclosed, “The proposed $1 billion Ethereum DAT has been shelved, and funds have been returned to investors.” This news has sent shockwaves through the crypto marketplace.
A significant portion of the capital, amounting to $200 million, originated from Avenir Capital, where Li serves as chairman. Additionally, around $500 million was sourced from institutional investors within Asia, including HongShan Capital Group.
Data Asset Trusts have gained traction similar to the strategy earlier popularized by Michael Saylor’s MicroStrategy, transitioning from an initial Bitcoin focus toward altcoins like Ethereum and Solana in 2025.
For instance, BitMine stands out as the leading Ethereum DAT, having established its ETH reserve strategy earlier this year. According to their latest announcement, they currently hold 3,559,879 tokens, acquired for a staggering $11.1 billion.
In contrast, the Asia-centered DAT initiative never got off the ground. Wu Blockchain indicated that the cancellation was largely influenced by the recent market downturn triggered by a significant sell-off on October 11.
Ethereum’s price has sharply declined along with broader market trends since that event, falling over 38% from its highs earlier in October. Consequently, BitMine’s holdings are also underwater, presently valued at $10.3 billion, which is approximately 7% below their purchase price.
Insights from CryptoQuant’s analyst Maartunn reveal that the average “Realized Price” for the Ethereum network is pegged at $2,316. This statistic empowers traders and investors with an understanding of market movements and pricing trends.
Despite the downturn, average investors remain in profit, approximately 24%, although the market had previously reached extraordinary profitability levels during Ethereum’s peak. The recent cooling of market momentum has been noted by analysts as a necessary pause before potential recovery.
Current State of ETH Pricing
The Ethereum market has recently experienced a further decline, with its price dipping 5% in the last day, now standing at $2,880. Such fluctuations underscore the volatility that characterizes the cryptocurrency landscape.
