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Ethereum Updates Today: The Fall of Ethereum DAT Highlights the Vulnerability of Crypto's Institutional Aspirations

Ethereum Updates Today: The Fall of Ethereum DAT Highlights the Vulnerability of Crypto's Institutional Aspirations

Bitget-RWA2025/11/19 07:04
By:Bitget-RWA

- Ethereum's $1B DAT project collapsed, refunding $200M amid crypto market volatility and regulatory uncertainty. - The initiative aimed to bridge traditional finance and crypto but reversed due to risk aversion and macroeconomic pressures. - Ethereum prices dipped below $3,100 while Bitcoin fell below $91,000, reflecting broader market turbulence and liquidity challenges. - Project creators may relaunch DAT if conditions stabilize, emphasizing risk management over short-term crypto ambitions.

A significant

investment project has unraveled, as $200 million is being returned to backers, reflecting evolving trends in the cryptocurrency market. The Ethereum Trust (DAT), which was planned as a $1 billion fund to draw institutional investors to Ethereum, was due to unstable market conditions. This move highlights the vulnerability of large crypto ventures amid regulatory ambiguity and broader economic challenges.

The DAT,

, sought to launch a regulated Ethereum investment vehicle by acquiring a shell company listed on Nasdaq. Supporters described it as a link between mainstream finance and digital assets, hoping to attract institutional money. Yet, the project's reversal—with all capital returned—signals a shift toward caution. " ," analysts observed, pointing out that even well-funded initiatives now encounter increased examination.

This cancellation comes amid heightened market instability.

Ethereum Updates Today: The Fall of Ethereum DAT Highlights the Vulnerability of Crypto's Institutional Aspirations image 0
Ethereum’s value briefly fell below $3,100 on November 16, 2025, and previously inactive wallets holding 1,200 ETH became active again. Although prices bounced back above $3,100 within a few hours, the incident underscored ongoing price swings. " ," commented a trader on X, highlighting the challenges of holding long positions in such an environment.

The wider crypto sector has experienced even steeper drops.

tumbled below $91,000 on November 18, 2025, in just one day. Market watchers attributed the downturn to delayed liquidity injections from the U.S. Treasury and uncertainty over Donald Trump’s proposed $2,000 tariff dividend, expected in mid-2026. " ," analysts cautioned, noting that future developments depend on Federal Reserve actions and economic indicators.

For Ethereum, the DAT’s failure could slow progress in regulated ETH investment products. The initiative had the potential to be a milestone for institutional adoption in Asia.

. On the other hand, the transparent refund process has been commended for fostering trust. " is a prudent strategy," remarked a market observer.

Looking forward, the DAT’s founders have indicated they may revisit the project if the market stabilizes. For now, the current upheaval stands as a warning for crypto ventures. "

," a blockchain expert commented, stressing the importance of flexibility in a constantly changing market.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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