Ethereum ETF Approval Sees Minor Decline in Broad Market, $400 Million in Liquidations

After the dust settled on the madness surrounding the SEC's approval of ethereum ETFs, the crypto market experienced high levels of volatility. Data from CoinGecko shows that the top 20 digital assets (by market capitalization, excluding stablecoins) experienced losses of about 3% each.

Overall, bitcoin (btc) and ethereum (eth) saw drops of 3.4% and 3.5%, respectively. btc is now trading at $67.3k, with ethereum down the street to $3.6k. At the time of writing, sell-offs across the market led to outflows of around $400 million.

The weak market performance resulted in more than 107,000 cryptocurrency traders suffering losses exceeding $400 million. According to Coinglass settlement dataeth long traders, who were expecting the ETF news to boost the price of the digital asset, were hit the hardest by these losses, totaling around $107 million.

The biggest 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 approval of the ethereum spot ETF, as evidenced by the narrowing discount between ETHE and Grayscale's eth in the days leading up to the decision.

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This analysis suggests that the approval of the eth ETF was a “selling the news” event, and investors who anticipated the approval positioned themselves accordingly. Notably, last week the price of eth rose by approximately 21%, with the ethereum futures market hitting a one-year high of 3.6 million eth.

The weak market performance was also attributed to the delay in the launch of ETFs. While the SEC has approved ETFs, it has not yet granted clearance for their launch, requiring an approved S-1 filing, although this is considered more of a formality. James Seyffart, Bloomberg ETF Analyst x.com/JSeyff/status/1793752733763445043″ rel=”noopener nofollow noreferrer”>Explain that the S-1 approval process could take a couple of weeks or more.