Trade Truce Falls Flat for Safe Havens—But Ethereum ETFs Rally

Gold and Bonds Stay Guarded Despite U.S.–China Trade Truce

Markets reacted cautiously to the U.S.-China tariff pause, with equities rallying but safe havens staying muted. U.S. 10-year yields remain elevated at 4.39%, reflecting lingering economic concerns. Gold dipped to $3,216/oz as hawkish Fed policy and strong data reduced its appeal, though geopolitical risks keep investors watchful, regardless of these latest developments. All eyes remain on Fed decisions and trade developments.

In contrast, the crypto market—particularly Ethereum—is seeing a wave of renewed enthusiasm. Ethereum has rallied strongly on the back of recent network upgrades and rising institutional interest, with ETF flows starting to recover. For investors looking beyond traditional assets, Ethereum-linked ETFs are beginning to stand out as a high-upside play in a still-uncertain macro landscape.

Ethereum’s Momentum Builds on Technical Strength and Institutional Moves

Ethereum’s breakout above $2,600 has revived bullish sentiment, especially as it now trades consistently above its realized price of $1,900—the average cost basis of all ETH in circulation. This rare technical setup signals that most investors are now in profit, which helps reinforce market confidence.

The recent Petra upgrade—also known as Pectra—adds to that momentum. It boosts Ethereum’s competitiveness by enhancing transaction speed and increasing the burn rate of ETH tokens, effectively reducing supply just as demand begins to return. This combination of tightening supply and growing usage is rekindling long-term optimism.

BlackRock Backs Ethereum with Strategic ETF Amendment

Adding fuel to the rally, BlackRock has submitted an amendment to the SEC to enable in-kind creation and redemption for its spot Ethereum ETF (ETHA). If approved, this mechanism would allow direct ETH-for-share transactions, avoiding capital gains taxes and improving ETF liquidity and pricing efficiency—key advantages for institutional adoption.

BlackRock also recently added nearly 8,000 ETH to its holdings, reinforcing its status as Ethereum’s largest corporate holder with over 1 million ETH worth close to $3 billion. As other issuers like VanEck, WisdomTree, and Invesco follow suit, expectations are rising that in-kind redemptions—and potentially staking features—could gain regulatory approval by year-end.

Ethereum ETPs Bounce Back in Europe

The broader cryptocurrency ETP market rebounded 8.55% this week, reflecting a renewed appetite for digital assets. Ethereum-specific products led the way, with CoinShares’ Ethereum Tracker One (ETHEREUM XBT) jumping 33.04% and the Euro-denominated Ethereum Tracker (ETHEREUM XBTE) up 31.53%. These gains mark the strongest weekly performance in months, fueled by ETH’s price surge and institutional optimism following BlackRock’s ETF move—hinting at a potential turning point in Ethereum’s investment narrative.

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Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.