Bitcoin (BTC) experienced a surge to over $71,000 early on Tuesday as a result of the likelihood of approval for a spot ETH exchange-traded fund (ETF) in the U.S. being  raised to 75%, significantly boosting market sentiment.

This recent development marks its highest value since early April. Simultaneously, ether saw a substantial increase of over 19% to reach $3,700 following the announcement.

While other major cryptocurrencies, including XRP, Cardano’s ADA, Solana’s SOL, and Dogecoin (DOGE), also recorded gains ranging from 3–6%, the most significant impact was observed in the liquidation of bearish short positions across the market.

This sudden upward movement triggered over $260 million in market-wide short liquidations, marking the largest liquidation event since February 28.

Notably, Ether shorts incurred losses of over $115 million, followed by bitcoin shorts at just over $99 million. Crypto exchange Binance recorded the highest amount of liquidations, tallying over $130 million, followed by OKX at $118 million and Huobi at $51 million.

It’s important to note that short positions involve bets against upward price movements, and 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.

The market rally that commenced late on Monday was fueled by the news of the increased odds of spot ether ETF approval.

The U.S. Securities and Exchange Commission (SEC) had requested aspiring ether exchange-traded fund exchanges to update 19b-4 filings ahead of a crucial deadline, further hinting at potential approval.

Market participants widely perceive the approval of an ether ETF as a bullish catalyst that could pave the way for substantial institutional capital inflows.

Drawing similarities to the spot bitcoin ETF, which has accumulated $12 billion in total inflows for BTC since its inception in January, industry experts anticipate a similar trend for ether if an ETF is approved.

With all of the market excitement, some traders anticipate a further rise in ether prices in the coming days. Singapore-based QCP Capital expressed their viewpoint, stating, “Our view is that it is unlikely that spot can settle here, with approval taking us closer to 4k and denial back to 3k. Exchanges are being asked to update 19b-4 filings on an accelerated basis, suggesting approval is imminent.”

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Bitcoin’s Battle for Stability

The renewed optimism surrounding U.S.-listed ether ETFs has not only driven the cryptocurrency market to new heights but has also triggered significant liquidations of bearish positions, highlighting the potential impact of regulatory developments on market dynamics.

Stay updated on the latest news surrounding U.S.-listed ether ETFs as any developments could have a major impact on the market.