<\/p>\n
Following a historic ruling that may clear the path for an eventual spot bitcoin ETF, traders holding short positions have been liquidated to the tune of $120 million in just 24 hours.\u00a0<\/p>\n
On Tuesday, a panel of three judges from the DC Circuit Court of Appeals sided with asset management company Grayscale in their June 2022 suit against the US Securities and Exchange Commission, which centered on whether the $50 billion firm could convert its Bitcoin investment trust to a direct exchange traded fund (ETF).\u00a0<\/p>\n
In an email to Blockworks, an SEC spokesperson wrote<\/a>, \u201cWe are reviewing the court\u2019s decision to determine next steps.\u201d Nonetheless, many observers have said that the ruling paves the path to an eventual Bitcoin spot ETF<\/a>.<\/p>\n In anticipation of fresh inflows from Wall Street investors, prices across the cryptosphere ripped higher on the news. Ether (ETH<\/a>) rose as much as 5.5% and bitcoin (BTC<\/a>) by 7.2% in a broad-based rally.<\/p>\n Read more:<\/strong> Court grants Grayscale\u2019s petition for review in bitcoin ETF case against SEC<\/a><\/p>\n The volatility proved to be particularly troublesome for derivatives traders. Per data from Coinglass<\/a>, $169 million in positions were liquidated, with short positions accounting for nearly two-thirds at $120 million. The liquidations were the most since Aug. 16 when over $1 billion in positions were wiped<\/a> as the market crashed.\u00a0<\/p>\n The wipeout hasn\u2019t stopped new traders from piling in, however. According to DeFiLlama, the amount of open interest on-chain increased 150% in the past 24 hours on Ethereum alone, with total cross-chain derivatives volume reaching over $2.5 billion.\u00a0<\/p>\n Additionally, according to Velo, during a four-hour period on Tuesday the total open interest increased nearly tenfold<\/a> from $3.8 billion to $34 billion.\u00a0<\/p>\n Despite another strong ruling as a court dismissed a class-action suit against the Uniswap developers<\/a>, prices have largely drifted lower on Wednesday. Bitcoin has fallen to $27,200 from a peak of $27,850 earlier in the day.<\/p>\n Get the day\u2019s top crypto news and insights delivered to your email every evening.\u00a0Subscribe to Blockworks\u2019 free newsletter<\/a>\u00a0now.<\/strong><\/p>\n Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can\u2019t-miss tweets and more from\u00a0Blockworks Research\u2019s Daily Debrief<\/a>.<\/strong><\/p>\n Can\u2019t wait? Get our news the fastest way possible.\u00a0Join us on Telegram<\/a>\u00a0and follow us on\u00a0Google News<\/a>.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Following a historic ruling that may clear the path for an eventual spot bitcoin ETF, traders holding short positions have been liquidated to the tune of $120 million in just 24 hours.\u00a0 On Tuesday, a panel of three judges from the DC Circuit Court of Appeals sided with asset management company Grayscale in their June […]<\/p>\n","protected":false},"author":2,"featured_media":144996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-144995","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/144995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=144995"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/144995\/revisions"}],"predecessor-version":[{"id":145813,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/144995\/revisions\/145813"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/144996"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=144995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=144995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=144995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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