In the past 24 hours, traders betting against higher bitcoin (BTC) prices lost over $100 million as hopes of a spot bitcoin exchange-traded fund (ETF) approval in the U.S. drew closer. BTC surged as high as 9% on Monday, reaching over $47,000 for the first time since March 2022, before some gains were given back. The most significant losses were seen on the crypto exchange OKX, which saw $84 million in losses, followed by Binance with $71 million.
The number of unsettled futures contracts, known as open interest, jumped over 8% in the past 24 hours, suggesting that traders opened more bets after the liquidation event, anticipating continued volatility.
Liquidation occurs when an exchange forcibly closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. Large liquidations can signal the local top or bottom of a steep price move, which can help traders position themselves accordingly.
The potential approval of the first-ever bitcoin ETF in the U.S. is drawing significant attention. Several potential issuers, including BlackRock and Grayscale, filed their offering fees to the U.S. Securities and Exchange Commission on Monday, marking one of the final steps before the ETF can be launched. Thirteen proposed ETFs are awaiting SEC approval, with a final decision expected on Wednesday. Some issuers are already competing for customers by offering no fees for the first six months or for the first $5 billion in assets under management (AUM).
SEC officials are said to have sent comments to a set of prospective issuers addressing minor details in the amended S-1 forms, with filings expected on Tuesday. This upcoming decision on the bitcoin ETF approval in the U.S. has the potential to greatly impact the cryptocurrency market.