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Cancellation of a Major Asian Ethereum DAT Initiative
A highly anticipated Ethereum Digital Asset Treasury (DAT) project led by prominent Asian investors has been discontinued due to adverse market conditions, according to Wu Blockchain.
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Background on the Ethereum DAT Initiative
In the previous month, Bloomberg highlighted a plan by influential Asian investors to establish an Ethereum trust. These investors included Li Lin, founder of Huobi, Shen Bo, co-founder of Fenbushi Capital, and Xiao Feng, chairman and CEO of HashKey Group. Discussions were underway to acquire a NASDAQ-listed entity to support the DAT structure, with a formidable backing of $1 billion already secured.
Wu Blockchain has since reported that the initiative has been shelved. “The US$1 billion Ethereum DAT proposed by leading Asian crypto investors has been shelved, and the committed capital has been returned,” noted the report.
Financial Commitments and Market Trends
Among the financial commitments, $200 million was contributed by Avenir Capital, chaired by Huobi’s Li. Additionally, Asian institutional investors like HongShan Capital Group pledged $500 million. The concept of DAT companies gained traction with strategies popularized by Michael Saylor’s Strategy (formerly MicroStrategy), focusing initially on Bitcoin. However, 2025 has witnessed a notable shift towards altcoins such as Ethereum and Solana.
BitMine, currently the largest Ethereum DAT and the second-largest overall after Strategy, adopted its ETH reserve strategy in June. According to a recent press release, BitMine holds 3,559,879 ETH tokens, acquired for $11.1 billion.
Unlike BitMine, the Asian-led DAT project was halted prior to its launch, primarily due to a market downturn triggered by a significant sell-off on October 11, as reported by Wu Blockchain.
Current Market Impact and Future Outlook
The cryptocurrency market has experienced significant volatility, causing Ethereum to drop over 38% from its October peak. Consequently, BitMine’s holdings are now valued at $10.3 billion, marking a 7% decrease from the acquisition cost.
CryptoQuant community analyst Maartunn highlighted that the Ethereum network’s average cost basis, or “Realized Price,” is at $2,316. Despite the recent downturn, average investors remain approximately 24% profitable. Previously, when Ethereum was at its peak, profitability was notably high. However, current market trends indicate a cooling off as noted by Maartunn, “Momentum is cooling off as the market takes a breather.”
Ethereum Price Analysis
Ethereum has encountered an additional 5% decline, bringing its current price to $2,880. The cryptocurrency has been experiencing a bearish trend in recent days.
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