100,000 investors were liquidated! The issuance of the Ethereum ETF triggered a market shock, and the price "plunged" to $3,600

Interface News

2024-05-24 20:29Posted on the official account of Shanghai Jiemian News

Interface News Reporter | Feng Saiqi

On May 23, local time, the U.S. Securities and Exchange Commission (SEC) disclosed a document on the adoption of the trading rules for Ethereum spot ETFs, marking another key step forward in the approval of related cryptocurrency ETFs.

Driven by this news, the price of Ethereum ushered in a sharp rise, from around $3600 / piece to the $4000 / piece mark, according to CoinMarketCap data, the price of Ethereum once as high as $3943.55 / piece, the highest price in nearly two months.

But this peak was short-lived, and Ethereum soon fell below $3,900 and returned to above $3,600.

As of 6 p.m., Ethereum (ETH) was quoted at $3,665.12 per coin, falling back below the $3,900 mark, down 4.36% in the past 24 hours and up 20.68% in the past week.

Bitcoin is trading at $67,100 per coin, down 3.72% in the past 24 hours and up 1.29% in the past week. The prices of other cryptocurrencies by market capitalization have all declined to varying degrees over the past day.

In the last 24 hours, a total of 109,400 investors have been liquidated, with a total amount of $397 million.

The favorable policies released by the SEC have caused the market to overheat its investment in Ethereum.

Judging from the liquidation heat map, the vast majority of investors have been liquidated due to longs in the past day, and the largest amount of currency warehouse receipts involved is Ethereum, which has a value of $152 million in the past 24 hours, of which $107 million is long.

It is reported that BlackRock, Fidelity, Grayscale, Invesco, VanEck, Galaxy Digital, ARK Invest, 21Shares, Hashdex, Bitwise and many other asset management institutions are the issuers of Ethereum spot ETFs, and it is worth noting that they also participated in the issuance of Bitcoin spot ETFs.

Grayscale Asset Management issued a statement on social platforms saying that it has received a notice of approval of the product's Form 19B-4.

It is reported that the SEC approved the trading rule change form submitted by the New York Stock Exchange, the Chicago Board Options Exchange and the NASDAQ involving Ethereum spot ETFs, namely Form 19b-4, which involves the trading rules, listing standards and fee structure of Ethereum spot ETF products. This move is seen by the market as another historic moment for cryptocurrencies to enter the mainstream capital market.

Zhao Wei, a senior researcher at the OKX Research Institute, told Jiemian News that the approval of the Ethereum spot ETF was expected, but it landed earlier than expected. The SEC's approval of the listing of Ethereum spot ETFs will bring more positive impact to the industry.

He pointed out that in the short term, the listing of Ethereum spot ETFs provides qualified traditional financial individuals and institutional investors with a safer and more convenient channel and entrance to allocate ETH assets, lowers their participation threshold, and further enhances the attractiveness and availability of ETH.

"In the long term, as traditional brokerages officially open their ETH exposure to qualified traditional financial individuals and institutional investors, this will bring new capital to the industry and help the crypto industry move towards large-scale and compliance."

However, Ethereum spot ETFs are still one step away from listing, and the SEC still needs to approve S-1 forms filed by various issuers. When the S-1 form is approved, the Ethereum spot ETF can truly be market-oriented. Looking back at the SEC's approval of the Bitcoin spot ETF, the approval deadline was repeatedly postponed, and it finally took nearly 4 months to approve the product.

In early January, the U.S. regulator SEC approved 10 spot bitcoin exchange-traded funds (ETFs) listing applications in a row, allowing large investment companies such as Blackrock, Fidelity and Grayscale to sell bitcoin spot ETFs on major U.S. exchanges. As of now, the total market capitalization of Bitcoin spot ETFs is $56.9 billion, and the total assets under management are $53.362 billion.

View original image 197K

• 

•