Markets
Crypto Markets Fall After Ethereum ETF Approvals
Traders ‘sell the news’ after SEC approves eight spot Ether-backed exchange-traded funds.
Crypto markets traded lower after SEC approved eight Ether-backed exchange-traded funds in cash on Thursday.
The long-awaited approval, initially expected to boost the market further, turned into a “news sell-off” event, leading to an overall market crash.
ETH fell 4% following approval after rising 20% last week. The world’s largest cryptocurrency, Bitcoin, also continued its downward trend, falling 6%, while Solana fell 5%.
Ethereum Price
Benjamin Cowen, CEO of ITC Crypto, finds It’s comical that people are upset about ETH’s lack of movement. “ETH is up more this week than the S&P 500 typically offers in a year.”
According to crypto analyst Zach Rynes, the lack of positive momentum means that “everyone who wanted to buy approval has already done so”.
The exchanges involved – NYSE Arca, Nasdaq and Cboe BZX – have requested changes to the rules for listing and trading Ether ETFs. They have received approval to trade several Ethereum-based ETFs, including Grayscale Ethereum Trust, the Bitwise Ethereum ETF, BlackRock’s iShares Ethereum Trust, the VanEck Ethereum Trust, the ARK 21Shares Ethereum ETF, the Invesco Galaxy Ethereum ETF, the Fidelity Ethereum Fund and Templeton’s Franklin ETF Franklin Ethereum.
CoinGlass Data show that 104,585 traders were liquidated in the last 24 hours, for a total of US$380 million. The largest single settlement order occurred on Binance in the ETH-USDC pair, valued at $12.41 million. More than $105 million worth of long positions were liquidated in the last 24 hours.
Long liquidations occur when traders betting on price increases are forced to close their positions due to falling prices, leading to automatic selling.
Meme coins are mixed today, with Dogecoin and PEPE up 3%, while Shiba Inu, FLOKI and Dogwifhat are down between 1% and 3%.
The DOGE price action comes as Kabosu, the dog who inspired the Dogecoin meme in 2013, has passed away. Its owner, Atsuko Sato, a 62-year-old kindergarten teacher from Sakura in Chiba Prefecture, Japan, confirmed the news in a blog. publish on Friday.
US stock markets posted gains ahead of the Memorial Day long weekend. The Dow rose 0.2%, while the S&P 500 and Nasdaq rose 0.6% and 1%, respectively.