Traders betting on a fall in Bitcoin (BTC) prices have lost more than $100 million in the past 24 hours as hopes for spot Bitcoin exchange-traded fund (ETF) approval in the US move closer to the finish line. did.
BTC soared 9% on January 8, topping $47,000 for the first time since March 2022, but has since pulled back slightly. Traders on cryptocurrency exchange OKX suffered a loss of $84 million (approximately 12.2 billion yen, equivalent to 1 dollar = 145 yen), followed by Binance with a loss of $71 million (approximately 10.3 billion yen) Ta.
Open interest, the number of outstanding futures contracts, has surged more than 8% in the past 24 hours, suggesting traders expected volatility to continue and started placing more bets after a liquidation event.
Liquidation refers to the forced closing of a trader’s leveraged position by an exchange due to the loss of some or all of the trader’s initial margin. This occurs when a trader is unable to meet the margin requirements for a leveraged position (does not have enough funds to continue trading).
Large liquidations can indicate local peaks or troughs in price movements, and traders can take positions accordingly.
Such data is useful to traders because it serves as a signal that leverage is effectively being flushed out of popular futures products.
Market action on January 8th saw a wide range of potential ETF issuers, from BlackRock to Grayscale, file fees with the U.S. Securities and Exchange Commission (SEC), marking the first ever Bitcoin ETF. This is because the company has entered the final stage before being listed in the United States.
The battle for customers already appears to be heating up, with 13 ETF applications awaiting SEC approval. Some issuers are waiving fees for the first six months or up to $5 billion in assets under management.
A final decision on approval or rejection is expected to be made on the 10th. Meanwhile, SEC officials are said to have sent comments to a series of prospective ETF issuers referring to details of the amended Form S1 (the application filed with the SEC upon listing) scheduled to be filed on the 9th. A source familiar with the matter told CoinDesk.
｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: Nikhilesh De/CoinDesk
｜Original text: Bitcoin ETF Approval Expected Soon, Bears Lose $100M