Ethereum Spot ETF application triggers severe market Fluctuation ETH breaks through 2000 dollars

Asset management giant applies for Ethereum spot ETF, market fluctuates violently

On the evening of November 9, regulatory documents revealed 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 took similar registration steps a week before submitting its application for a Bitcoin spot ETF to the regulators.

After the news broke, the ETH price quickly soared from below $1900 to above $2000.

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

According to the document, this asset management company has chosen a U.S. cryptocurrency 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 this exchange, which seems to be a key factor for the regulatory approval of such ETFs.

In response to potential regulatory concerns, the company pointed out in its application that the Ether futures prices from the CME Group under the Chicago Mercantile Exchange are closely aligned with the spot ETH prices. They believe that if the Chicago Mercantile Exchange can monitor and detect fraud in the spot market for futures ETFs and spot exchange trading, then this should be achievable for any type of product.

This application has also boosted market confidence in the ETH Spot ETF. According to analysts, there are currently 5 Ethereum Spot ETF applications awaiting approval.

It is worth noting that there are reports that the asset management company is increasingly confident that U.S. regulators will approve its Spot Bitcoin ETF in January next year. It is reported that regulators may open an eight-day window period, potentially approving all 12 Spot Bitcoin ETFs.

However, shortly after the ETH surge, the market suddenly experienced a severe correction. Bitcoin skyrocketed from around $35,000 to nearly $38,000, before quickly dropping to around $36,300. ETH also briefly fell below $2,000. Compared to mainstream assets, some small-cap tokens experienced even steeper declines, such as projects like TRB.

Severe market fluctuations have led to a large number of contract liquidations. Data shows that as of 9 AM on November 10, the total amount of liquidations in the cryptocurrency market within 24 hours reached $493 million, with long positions liquidated at $219 million and short positions liquidated at $274 million. By cryptocurrency, BTC liquidations amounted to approximately $167 million, accounting for the largest share, while ETH liquidations were about $81.95 million.

As of now, the market has stabilized again, with Ethereum ecosystem-related tokens leading the gains, such as its staking concept coins Lido, Rocket Pool, and SSV Network, all showing an increase of nearly 20%. This series of events once again highlights the high volatility of the cryptocurrency market, and investors need to act with caution.