Ethereum ETF approval sees minor decline in broader market, $400M in liquidations

Ethereum ETF approval sees minor decline in broader market, $400M in liquidations

Share this article

After the dust settled on the craze around the SEC’s approval of Ethereum ETFs, the crypto market saw high levels of volatility. Data from CoinGecko shows that the top 20 digital assets (by market cap, excluding stablecoins) saw losses of roughly 3% each.

Broadly, Bitcoin (BTC) and Ethereum (ETH) saw declines of 3.4% and 3.5%, respectively. BTC is now playing at $67.3K, with Ethereum cruising down at the street at $3.6K. At the time of writing, market-wide liquidations saw around $400 million in outflows.


The market’s subdued performance resulted in over 107,000 crypto traders suffering losses exceeding $400 million. According to Coinglass liquidation data, ETH long traders, who expected the ETF news to boost the digital asset’s price, bore the brunt of these losses, totaling around $107 million.

The largest single liquidation was a $12.4 million long bet on Ethereum on the Binance exchange. Bitcoin traders also lost approximately $75 million during the same period.

Julio Moreno, head of research at CryptoQuant, noted that the market had already priced in the Ethereum spot ETF approval, evidenced by the narrowing discount between Grayscale’s ETHE and ETH in the days leading up to the decision.

This analysis suggests that ETH ETF approval was a “sell-the-news” event, with investors who anticipated the approval positioning accordingly. Notably, the past week saw ETH’s price rising by roughly 21%, with the Ethereum futures market hitting a one-year high of 3.6 million ETH.

Muted market performance was also attributed to the delayed launch of the ETFs. While the SEC has approved the ETFs, they have yet to grant clearance for their launch, which requires an approved S-1 filing, though this is considered more of a formality. Bloomberg’s ETF analyst James Seyffart explains that the S-1 approval process could take a couple of weeks or longer.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight – and oversight – of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Source link


Be the first to comment

Leave a Reply

Your email address will not be published.