The broader crypto market experienced notable volatility over the past day following the US Securities and Exchange Commission's approval of several spot-based Ethereum exchange-traded funds (ETFs).

According to CryptoSlate data, the top 20 digital assets by market capitalization, excluding stablecoins like Tether's USDT and Circle's USDC, saw losses exceeding 3% each. Bitcoin and Ethereum, the two largest digital assets by market capitalization, dropped to $67,051 and $3,671, respectively.

Market analysts suggested that the approval of the ETH ETF was a “sell-the-news” event, with investors having already positioned themselves in anticipation. ETH’s price had risen by more than 20% in the past week, and CryptoSlate noted that the Ethereum futures market hit a one-year high of 3.6 million ETH.

Julio Moreno, head of research at CryptoQuant, commented:

“It seems the market had already priced in the Ethereum spot ETF approval. Grayscale’s ETHE discount to ETH has significantly narrowed in the last few days, similar to what happened between GBTC and Bitcoin as the Bitcoin Spot ETF approval was approaching.”

Experts also pointed to the delayed launch of the ETFs as a reason for the market’s subdued performance. While the SEC has approved the ETFs, they still require an approved S-1 filing to launch, though this is largely a formality.

Bloomberg’s ETF analyst James Seyffart explained:

“This is just 19b-4 approval. There also needs to be approval on the S-1 documents, which will take time. We expect this to take a couple of weeks, but it could take longer.”

Over $400 million was liquidated as over 107,000 crypto traders suffered losses due to the market’s performance.

Coinglass data reveals that ETH long traders, who expected the ETF news to boost the digital asset's price, faced the most significant losses, totaling around $107 million. The largest single liquidation was a $12.4 million long bet on Ethereum on the Binance exchange. Bitcoin traders lost approximately $75 million during the same period.