Liquidation of Short Positions Reaches $260 Million with Ether ETF Hopes

Ether ($ETH ) rose over 19 percent to $3,700 after Bloomberg analysts raised the probability of the spot ETH exchange-traded fund ($ETF) being approved in the U.S. to 75 percent. Bitcoin ($BTC ) was also affected by the developments and exceeded $ 71,000 and reached its highest level recorded since the beginning of April.

According to CoinGecko data, Ripple's $XRP , Cardano's ADA, Solana's SOL and dogecoin (DOGE) rose between 3-6 percent.

The sudden rise resulted in over $260 million in short position liquidations across the market. According to Coinglass data, ether short positions lost over $115 million in value, followed by bitcoin with $99 million.

Crypto exchange #Binance witnessed the largest liquidation among its rivals by recording liquidations of over $130 million, while Binance was followed by OKX with $118 million and Huobi with $51 million.

Markets have continued to recover since yesterday evening, with Bloomberg analysts Eric Balchunas and James Seyffart increasing their expectations for approval of spot ether ETFs from 20 percent to 75 percent.

Market participants predict that the rise will continue if ether ETFs are approved. Spot bitcoin ETFs, which began trading in January, generated a total of $12 billion in inflows for BTC.

That's why some traders expect ether prices to rise further in the coming days.

Singapore-based QCP Capital reports: "Our view is that approval will push ether closer to 4,000. Exchanges are asked to update their 19b-4 filings quickly, indicating that approval is close."