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Cryptocurrency Markets Rebound Ahead of Expected Ethereum ETF Approval

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Cryptocurrency markets rallied on Monday as investors turned bullish ahead of the potential approval of Ethereum ETFs.

Bitcoin trades 2% higher at $63,000, while Ethereal is up 2%. Solana is up 3% and Polkadot is up 3%.

ETH Price

Among the top 100 digital assets by market cap, Ethereum Name Service (ENS) and LayerZero (ZRO) lead the pack, up 17% and 14%, respectively.

Analysts initially expected spot Ethereum ETFs to receive approval by July 2. However, the U.S. Securities and Exchange Commission (SEC) has since required issuers to submit revised documents by July 8.

Data from CoinGlass indicate that 33,692 traders were liquidated in the last 24 hours, for a total of $109.39 million. Specifically, $20.4 million in ETH shorts were liquidated. Short liquidations occur when traders betting against an asset are forced to cover their positions, often at a loss.

James Butterfill, Head of Research at CoinShares, noticed that digital asset investment products have suffered outflows for the third consecutive week totaling $30 million.

Ethereum has seen $61 million in outflows, bringing the total to $119 million in the past two weeks, leading the second-largest digital asset to see net outflows for 2024.

Meanwhile, traditional financial markets staged a positive start to the second half of 2024. The Dow Jones Industrial Average rose 0.2%, while the S&P 500 gained 0.25% and the Nasdaq rebounded 0.5%.

This is a holiday-shortened trading week, with U.S. markets closed on Thursday for Independence Day. The June jobs report is due Friday.

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