The global digital assets market recorded a major uptick today as the biggest cryptos like Bitcoin (BTC) and Ethereum (ETH) prices jumped by 6% and 19.5%, respectively. This has led crypto investors to raise their bets in Ether futures. This comes after the positive sentiments emerging around the approval of spot ETH exchange traded funds (ETFs) in the US.
Ether future OI zooms
As per the data, the notional open interest in Ether futures surged by 25%. It went on to hit a record of $14.05 billion in the past 24 hours. This broke the previous high of $13.2 billion seen on March 15. Ethereum price has jumped by nearly 19% to hit $3,680. This shows an increase in both open interest and price confirming a strong uptrend.
Data provided by Coinglass shows that more than 78k traders were liquidated in the last 24 hours. The total liquidations recorded turned out to be $328.61 million. The biggest single liquidation order happened on the crypto exchange Huobi of ETH-USDT valued at $3.11 million.
It is important to note that $267 million (81%) of the total liquidations recorded turned out to be short positions. Ethereum saw around $109.22 million in both long and short liquidations. However, $88.63 million of the liquidations stands out to be short positions. This suggests that the crypto investors were hoping for an Ethereum price drop as the crypto was facing high selling pressure.
Is ETF coming soon?
Ethereum price is up by almost 20% in the last 24 hours. ETH is trading at an average price of $3,708, at the press time. It is still down by 23% from its all time high (ATH) of $4,891 recorded on November 16, 2021.
Bloomberg’s ETF analysts, Eric Balchunas, and James Seyffart, raised the probability of SEC approval for spot ETH ETFs from 25% to 75%. The SEC’s request for exchanges to update 19b-4 filings on an accelerated basis suggests a fast-tracking of the ETF approval process. The decision on the VanEck spot ether ETF is expected by May 23.
The potential approval of spot ETH ETFs by the SEC could signify a more favorable regulatory environment for cryptocurrencies, potentially attracting more institutional investment. The crypto community is increasingly speculating that the SEC might approve spot ETH ETFs, signaling a major shift in regulatory stance.
