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Institutional Investments and Regulatory Boost Propel ETHU Up 1.4%

The Volatility Shares Trust 2x Ether ETF (ETHU) closed up 1.4% at $4.70 on February 5th, driven by a favorable regulatory environment and significant institutional investments in Ethereum. Ethereum's price rose by 1.65% to $2,776.96, buoyed by BlackRock's acquisition of $276.16 million worth of the cryptocurrency, signaling strong institutional confidence. The Cboe BZX Exchange's proposal to allow options trading on spot Ethereum ETFs is expected to enhance market liquidity and stability. Additionally, the recent Dencun update has increased Ethereum's circulating supply, raising concerns about its status as "ultrasound money." Despite these concerns, the market has seen substantial inflows into Ethereum ETFs, with a record $246.5 million in net inflows on February 4th, reflecting a bullish sentiment.