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

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.

https://twitter.com/jjcmoreno/status/1793706458393002203

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.