Spot Ethereum ETF anticipation wipes nearly $70 million worth of ETH

The cryptocurrency market has been on a downtrend for nearly two weeks but Monday’s events showcased how impatient Ethereum (ETH) investors are. In a downtrending market, traders are usually looking for signs of reversal to maximize profits. But sometimes, false signals might end up trapping many eager bulls, and Monday was one of those days.

While $19.81 million Bitcoin (BTC) longs were wiped on June 18, a whopping $39 million ETH longs faced the ax.

BTC vs. ETH liquidations 

Additionally, in the past 24 hours, total liquidation for Ethereum has hit nearly $69 million while that of Bitcoin hovers around $47 million. This widespread gap further adds to how impatient ETH holders are.

Liquidation heatmap

Ether’s underperformance

Despite the spot Ethereum ETF approval on May 23, Ethereum price rallied by less than 30% before the ETF-induced momentum was lost. Since setting up a local top at 3,977 on May 27, ETH has crashed 14% and currently trades at $3,418. Ether’s lackluster performance can be clearly seen when comparing the returns posted since 2023 with the top five cryptocurrencies based on market capitalization. 

Solana (SOL) tops the chart with a 1,274% gain since 2023. Following SOL is Bitcoin, with Ethereum grabbing the third spot with an 182% return. Despite being the second-largest cryptocurrency in terms of market capitalization and ETF approval, ETH still lags behind BTC.

BTC, ETH, SOL, BNB, XRP performance

This is the second reason why Ethereum investors are eager to see ETH perform. With every potential uptick in buying pressure, traders tend to open long positions, hoping for the start of a magnificent rally. Between June 14’s low and June 16’s high, ETH rallied 8.67%, which was a relatively big jump in comparison to other altcoins. In line with this rally, the Open Interest (OI) also jumped from $14.69 billion on June 14 to $15.80 billion on June 17. However, the recent liquidation event has brought the OI back to June 14 levels.

ETH OI

Ethereum’s underperformance has played a pivotal role in attracting eager bulls, the partial approval of spot Ethereum ETF is another reason for making investors impatient. 

Ethereum’s ongoing ETF approval could drag on

Unlike the Bitcoin spot ETF approval, which took years to happen, the Ethereum spot ETF was given a go sign rather quickly by the U.S. Securities and Exchange Commission (SEC). But this approval wasn’t 100%, as the SEC only approved the 19b-4 forms for eight spot Ethereum ETFs from issuers like BlackRock, Fidelity, and Grayscale. 

While this development was a major win for ETH enthusiasts, but the issuers still need to get their S-1 registration statements approved by the SEC. Only after the S-1 forms are approved can Ethereum spot ETFs begin trading. Depending on feedback from the SEC and multiple revisions, it may take several weeks. However, estimates from Bloomberg ETF analyst Eric Balchunas, the S-1 forms are likely to be approved before July 2 and the trading could start as soon as the next day.