BlackRock's application for an Ethereum Spot ETF triggers market Fluctuation, with Crypto Assets long and short positions exploding nearly 500 million dollars

On the evening of November 9, a regulatory document showed that a large asset management company registered an Ethereum trust in Delaware. This marks the company's first step towards applying for a Spot ETF for Ether. Previously, the company registered a Bitcoin trust in a similar manner 7 days before submitting its application for a Bitcoin Spot ETF to the regulatory authorities.

After the news broke, the price of Ether quickly rose from below $1900 to above $2000.

Ethereum Spot ETF Application Details

A few hours after filing in Delaware, the documents submitted by the U.S. Nasdaq confirmed the asset management company's plans for an Ethereum ETF. The documents disclosed that the company will seek to list the product on a U.S. exchange after obtaining regulatory approval.

According to the document, the company has chosen a US crypto assets exchange as the custodian for the ETH held by the product, while an unnamed third party will hold its cash. The company has also signed a market supervision agreement with the exchange, which seems to be key for such ETFs to obtain approval from the US Securities and Exchange Commission.

To address potential regulatory objections, the application documents indicate that the Ether futures prices from CME Group, a subsidiary of the Chicago Mercantile Exchange, closely match the spot ETH prices. The documents argue that if the Chicago Mercantile Exchange can monitor and detect fraudulent activities in the spot market for futures ETFs and spot trades, then it should also be able to implement the same monitoring for any type of product.

Industry analysts indicate that there are currently five other Ethereum Spot ETF applications underway.

It is worth noting that there are reports that the asset management company is becoming increasingly confident that the U.S. Securities and Exchange Commission will approve its Spot Bitcoin ETF in January next year. It is reported that the regulatory agency may approve all 12 Bitcoin Spot ETFs within an eight-day window.

Crypto Assets market prices fluctuate dramatically

Just shortly after ETH surged, the market suddenly experienced a significant correction. Bitcoin soared from around $35,000 to nearly $38,000, and then quickly fell back to around $36,300. ETH also briefly dropped below $2,000.

Compared to mainstream assets, some small-cap crypto assets have experienced more severe pullbacks and spike events. For example, SOL dropped from $48 to $41, and Ordi fell from $20 to $15. This intense market fluctuation has caused significant losses for many high-leverage traders.

According to the data, as of 9 AM on November 10, the total liquidation in the crypto assets market within the past 24 hours reached as high as $493 million, with long positions liquidating at $219 million and short positions at $274 million. By coin type, Bitcoin liquidations amounted to approximately $167 million, accounting for the largest share, while Ethereum liquidations were approximately $81.95 million. The largest single liquidation occurred in a certain trading platform's BTC-USDT perpetual contract, valued at $14.76 million.

Currently, the market has stabilized again, with Ethereum ecosystem-related tokens leading the way. Among them, Staking concept tokens such as Lido, Rocket Pool, and SSV Network have all recorded an increase of nearly 20%.