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

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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

Ethereum

investment project has unraveled, as $200 million is being returned to backers, reflecting evolving trends in the cryptocurrency market. The Ethereum

Digital Asset

Trust (DAT), which was planned as a $1 billion fund to draw institutional investors to Ethereum, was

suddenly called off by its Asia-based organizers

due to unstable market conditions. This move highlights the vulnerability of large crypto ventures amid regulatory ambiguity and broader economic challenges.

The DAT,

first revealed in October 2025

, 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. "

The unpredictable state of the crypto market likely drove this decision

," 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,

after BitMEX co-founder Arthur Hayes liquidated $4.1 million

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. "

Ethereum’s ability to withstand pressure is under scrutiny

," 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.

Bitcoin

tumbled below $91,000 on November 18, 2025,

wiping out gains made in 2025 and causing over $800 million in forced sales

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. "

The market is approaching a critical turning point

," 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.

Its cancellation, though, might make investors even more cautious

. On the other hand, the transparent refund process has been commended for fostering trust. "

Focusing on safeguarding capital rather than chasing hype

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. "

Managing risk outweighs short-lived ambitions

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

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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