The delay of the SEC ETF pulls the market back, leading to $130 million liquidation chaos
Date: 2023-09-01 Author: Karina Ziganova Categories: BLOCKCHAIN, BUSINESS
U.S. Securities and Exchange Commission delays in BTC (ETF) stop orders have resulted in a market pullback that has netted around $130 million in the last 24 hours.
The SEC has postponed the decision on the finished ETF.
On August 31, notices were issued by the financial regulator allowing a decision on all ETF applications to be delayed until October. The delay arose because the regulator needed time to discuss and resolve issues related to the proposed rule change.
These include BlackRock, Valkyrie, WisdomTree and Invesco Galaxy. In addition, the decision affected the applications of companies such as Bitwise.
The delay was not declared a shock because it is consistent with previous forecasts by Bloomberg analysts Eric Balciunas and James Seyffart. They had an opportunity to anticipate the SEC's desire to delay filings while contemplating its next move, especially after Grayscale's recent legal success against the regulator.
Analyst data, despite the actions of the SEC, maintains a favorable outlook, believing that the 75% probability of ETF approval is growing.
Cryptocurrency Bitcoin crashes
Following the announcement of the delay, Bitcoin, which had just begun to cool after a short burst of sensitivity against a grayscale (two-component) grayscale background, fell approximately 5%, dropping from a $26,000 valuation to around $10,000. At the time of publication, the price of BTC was $25,976.
At the same time, the larger crypto market saw a decline of almost 4%, with a total market capitalization of $1.05 trillion.
These price actions generated $130 million in liquidation, which had an impact on long traders. BTC and Ethereum (ETH) accounted for about $80 million of these positions, according to Coinglass. At the same time, traders with positions in assets such as XRP, Bitcoin Cash and Solana made hundreds of millions of losses.
In addition, the largest single order liquidation was a $3.12 million long BTCUSD position in ByBit. More than 60% of the total number of liquidations came from the OKX and Binance exchanges.
