Markets
Crypto Markets Fall Following Ethereum ETF Approvals
Traders are ‘selling the news’ after the SEC approved eight exchange-traded funds backed by spot Ether.
Crypto markets fell after SEC approved on Thursday, eight exchange-traded funds backed by the Ether spot.
The much-anticipated approval, initially expected to further stimulate the market, turned into a “sell-out” type event, leading to an overall market plunge.
ETH fell 4% after the approval after rising 20% over the past week. The world’s largest cryptocurrency, Bitcoin, also continued its downward trend, falling 6%, while Solana was down 5%.
ETH Price
Benjamin Cowen, CEO of ITC Crypto, find It’s comical that people are upset about the lack of movement in ETH. “ETH is up more this week than the S&P 500 usually gives you in a year.”
According to crypto analyst Zach Rynes, the lack of bullish 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 permission to trade several Ethereum-based ETFs, including Grayscale Ethereum Trust, Bitwise Ethereum ETF, BlackRock’s iShares Ethereum Trust, VanEck Ethereum Trust, ARK 21Shares Ethereum ETF, Invesco Galaxy ETF Ethereum, the Fidelity Ethereum Fund and Franklin. Templeton’s Franklin Ethereum ETF.
Data from CoinGlass watch that 104,585 traders were liquidated in the last 24 hours for a total of $380 million. The largest liquidation order took place on Binance in the ETH-USDC pair, valued at $12.41 million. More than $105 million in 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, resulting in automatic sales.
Meme coins are mixed today, with Dogecoin and PEPE up 3%, while Shiba Inu, FLOKI and Dogwifhat fell between 1% and 3%.
The DOGE price action comes as Kabosu, the dog who inspired the Dogecoin meme in 2013, has died. Its owner, Atsuko Sato, a 62-year-old kindergarten teacher from Sakura, Chiba Prefecture, Japan, confirmed the news in a blog. job Friday.
US stock markets posted gains ahead of the Memorial Day long weekend. The Dow gained 0.2%, while the S&P 500 and Nasdaq rose 0.6% and 1%, respectively.