Spot Ethereum ETF Anticipation Leads to $70M Liquidation

## Ethereum Investors Impatient as Nearly $70 Million in ETH Wiped Out

Ethereum positions worth **$70 million** faced liquidations in the last 24 hours, highlighting the impatience of many ETH investors. This significant loss occurred despite the anticipation of a spot Ethereum ETF approval, which some believe could enhance Ether’s market performance to rival other top cryptocurrencies.

### Market Downtrend and Liquidation Impact

The **cryptocurrency market** has been on a decline for nearly two weeks. Monday’s events underscored the impatience among **Ethereum (ETH) investors**. In a declining market, traders often search for signs of a reversal to maximize profits. However, false signals can sometimes trap ambitious investors, as they did on Monday.

On June 18, while **Bitcoin (BTC) longs** worth $19.81 million were liquidated, **ETH longs** suffered a more significant blow, with liquidations totaling $39 million.

### BTC vs. ETH Liquidations

In the past 24 hours, Ethereum liquidations totaled nearly $69 million, significantly higher than **Bitcoin's** $47 million. This disparity showcases the high level of **impatience among ETH holders**.

### Ether’s Underperformance

Despite the partial approval of a **spot Ethereum ETF on May 23**, Ethereum's price increased by less than 30% before losing the ETF-induced momentum. After peaking at **3,977 on May 27**, ETH has since decreased by 14% and is currently trading at $3,418. 

When compared to the top five cryptocurrencies by market capitalization:
- **Solana (SOL)** leads with a 1,274% gain since 2023.
- **Bitcoin (BTC)** follows.
- **Ethereum** holds the third spot with a 182% return.

Even though Ethereum is the second-largest cryptocurrency by market cap and has ETF approval, it still lags behind Bitcoin in performance.

### Investor Behavior and Open Interest

Because of **Ethereum’s underperformance**, investors are eager for ETH to perform better. Any potential increase in buying pressure leads traders to open long positions, hoping for a significant rally. For instance, between June 14’s low and June 16’s high, ETH rallied by 8.67%, which was a notable jump compared to other altcoins. Correspondingly, **Open Interest (OI)** also increased 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.

### Ongoing Ethereum ETF Approval

Unlike the **Bitcoin spot ETF approval**, which took years, the **Ethereum spot ETF** received quicker approval from the **U.S. Securities and Exchange Commission (SEC)**. Yet, this approval isn’t complete; the SEC only approved the 19b-4 forms for eight spot Ethereum ETFs from issuers like BlackRock, Fidelity, and Grayscale.

While this was a win for ETH enthusiasts, issuers must still get their **S-1 registration statements approved** by the SEC. Only after the S-1 forms are approved can **Ethereum spot ETFs** start trading. Depending on the SEC’s feedback and required revisions, it could take several weeks. However, Bloomberg ETF analyst Eric Balchunas estimates that the S-1 forms might be approved by July 2, with trading to commence shortly after.