Key Points
- Justin Sun, founder of Tron, has purchased more Ethereum during the recent market crash.
- Despite Ethereum’s price drop, US spot Ethereum ETFs continue to attract significant inflows.
Justin Sun, the founder of Tron, has increased his Ethereum holdings as the cryptocurrency market seeks to rebound. The entire crypto sector experienced a significant price shift on Monday, which affected all cryptocurrencies.
This decrease followed widespread stock market sell-offs, spurred by disappointing job reports and perceived lack of action from the Federal Reserve. Consequently, the crypto market’s overall market cap dropped from $2.5 trillion on July 28 to approximately $1.9 trillion on August 5.
Capitalizing on the Ethereum Dip
While many investors are concerned about the price drop, others have taken this as an opportunity to increase their cryptocurrency holdings. With Ethereum’s price now at $2,519.88, after a 12.17% increase in the last 24 hours, Justin Sun decided to ‘buy the dip.’
Sun, a major Ethereum supporter, began accumulating the coin in February 2024. Since then, he has consistently acquired a portion of the Ethereum market. Most recently, Sun purchased 14,884 ETH, as reported by the blockchain analytics platform Spot On Chain. This acquisition, worth approximately $36 million, was made from the leading cryptocurrency exchange Binance.
Sun’s recent purchase brings his total Ethereum holdings to 392,474 units of the second-largest cryptocurrency by market cap. This entire holding cost him about $1.19 billion to purchase, but due to the recent price drop, it is barely worth $988.9 million. There were rumors that Sun had liquidated up to $200 million from his leveraged long position when Ethereum fell below $2,000. However, he denied these claims, stating that the Tron team does not participate in leveraged trades.
Ethereum ETFs Attract Institutional Investors Despite Price Drop
The recovery of Ethereum’s price, along with other cryptocurrencies, suggests that the broader financial market is stabilizing. This stabilization began after the release of strong PMI data and improving employment numbers. Despite Ethereum’s price challenges, US spot Ethereum ETFs have seen significant inflows.
Data from Farside Investors confirmed that the total net inflow for these products was $48.8 million on August 5. BlackRock’s iShares Ethereum Trust (ETHA) contributed inflows of $47.1 million and Grayscale’s ETHE registered outflows worth approximately $46.8 million. Additionally, Fidelity’s FETH and VanEck’s ETHV saw inflows of over $16 million each.
Interestingly, spot Ethereum ETFs have experienced this inflow trend since the beginning of the month. On August 1, Ethereum ETFs’ net inflow reached $26.7 million, driven by the large $89.6 million investment in BlackRock’s ETHA. This trend indicates the growing confidence and adoption of crypto products by institutional investors.
