Wall Street giants apply for Ethereum Spot ETF, crypto market experiences significant fluctuation

Recently, a well-known asset management company registered an Ethereum trust in Delaware, marking a key step toward applying for a Spot ETF for Ether. This move has triggered a significant fluctuation in the crypto market, with the price of Ether quickly rising from below $1900 to above $2000.

A few hours later, the documents submitted by the NASDAQ in the United States further confirmed the company's plan for an Ethereum ETF. According to the disclosure in the documents, the company will seek to list the product on the U.S. stock exchange after obtaining regulatory approval.

The company chose a US cryptocurrency exchange as the custodian for the ETH held by the product, while the cash portion is held by an unnamed third party. The two companies also signed a market supervision agreement, which is considered one of the key factors for such ETFs to obtain approval from the US Securities and Exchange Commission.

In order to address potential concerns raised by the SEC regarding monitoring and sharing, the application documents specifically point out that the Ether futures prices of the CME Group under the Chicago Mercantile Exchange are highly correlated with the spot ETH prices. This argument aims to demonstrate that if the Chicago Mercantile Exchange can monitor fraudulent activities in futures ETFs and spot exchanges, then regulation of spot ETFs should also be feasible.

Industry analysts indicate that there are currently several other institutions in the market that have submitted applications for Ethereum Spot ETFs, including some well-known asset management companies and cryptocurrency investment firms. Meanwhile, there are reports that the SEC may approve Bitcoin Spot ETFs in January next year, which further boosts market confidence.

However, after positive news stimulated the market to rise, the crypto market experienced a sharp correction. Bitcoin soared from around $35,000 to nearly $38,000, and then quickly dropped to around $36,300. Ethereum also briefly fell below $2,000. The altcoin market saw even more dramatic fluctuations, with some recently strong-performing projects experiencing particularly notable declines.

According to data platform statistics, in the past 24 hours, the crypto market saw nearly 500 million dollars in total contract liquidations, with long positions liquidating 219 million dollars and short positions liquidating 274 million dollars. Bitcoin had the largest liquidation amount, approximately 167 million dollars, followed by Ethereum, with liquidations of about 81.95 million dollars. The largest single liquidation occurred on a trading platform's Bitcoin perpetual contract, amounting to as much as 14.76 million dollars.

Currently, the market has begun to stabilize, and the concept coins related to Ethereum are performing strongly. Some tokens related to Ethereum staking, such as Lido, Rocket Pool, and SSV Network, have all seen an increase of nearly 20%.

This series of events once again highlights the high Fluctuation of the crypto market, and investors need to remain cautious and manage risks when participating in trading. At the same time, the continued attention of institutional investors on mainstream cryptocurrencies such as Ethereum also reflects that this emerging asset class is gradually gaining recognition in traditional finance.