Over $11M In Ethereum Shorts Liquidated As Valkyrie ETH ETF Futures Gain Approval

Valkyrie Investments has emerged victorious in offering the first-ever exchange-traded fund (ETF) featuring Ethereum ETH/USD futures. 

What Happened: As a result of Valkyrie’s ETH ETF Futures news, there has been a surge in ETH prices, leading to the liquidation of over $11 million worth of ETH short positions within the past 24 hours. 

The total value of liquidations during this period amounted to $13.78 million, with Ethereum shorts comprising the majority.

Liquidations refer to the process of closing out positions in the market when they reach a certain price level, often resulting in a loss for the traders involved. Short liquidations occur when traders who have bet on a price decrease are forced to close their positions due to a rise in the cryptocurrency's price, while long liquidations happen when traders who have speculated on a price increase are compelled to close their positions due to a drop in the price.

On the OKX exchange, ETH liquidations totaled $4.58 million. Among this value, $1.07 million was associated with long positions, while $3.52 million was linked to short positions. Short positions accounted for around 77% of the liquidations on OKX.

Liquidations on the Binance exchange amounted to $3.76 million. Of this sum, $718.98K were from long positions, while $3.04 million were from short positions. Short positions made up approximately 81% of the liquidations on Binance.

Within the past day, over 23,596 traders experienced liquidation events, leading to a total liquidation value of $71.12 million. Notably, the largest single liquidation order, valued at $2.00 million, occurred on the Bybit exchange.

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Why It Matters: Valkyrie Investments, headquartered in Nashville, has become the first out of nine ETF issuers to secure approval from the Securities and Exchange Commission (SEC) for an ETF that enables investors to speculate on the future price of Ethereum. 

Price Action: At the time of writing, ETH was trading at $1,607.29, up 3.13% in the last 24 hours, according to Benzinga Pro.

Photo by Tomasz Makowski on Shutterstock

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