Ethereum Spot ETF progress accelerates, ETH breaks through the $2000 barrier.

Recently, a well-known asset management company registered an Ethereum trust in Delaware, marking a key step towards applying for a spot Ether ETF. This move is similar to the company's previous application for a spot Bitcoin ETF, attracting widespread attention from the market.

After the news broke, the price of ETH quickly climbed from below $1900 to above $2000, showing a positive response from investors to this potential development.

A few hours later, documents submitted by the U.S. Nasdaq further confirmed that this asset management giant is planning an Ethereum ETF. The documents revealed that the company will seek to list this product on U.S. stock exchanges after obtaining regulatory approval.

According to the application documents, a US cryptocurrency exchange will act as the custodian of the ETH held by the product, while an unnamed third party will be responsible for holding its cash. In addition, the applicant has also signed a market supervision agreement with the custodian, which seems to be a key factor for such an ETF to gain approval from the US Securities and Exchange Commission.

In response to potential concerns raised by the SEC regarding monitoring and sharing, the applicants specifically pointed out in the document that the Ether futures prices of the CME Group under the Chicago Mercantile Exchange are highly correlated with the spot ETH prices. They believe that if the Chicago Mercantile Exchange can monitor and detect fraudulent activities in the spot market for futures ETFs and spot exchange trading, then this monitoring capability should also apply to various products.

Market analysts indicate that several other institutions have also submitted applications for Ethereum Spot ETFs, including some well-known asset management companies and cryptocurrency investment firms. Meanwhile, there are reports that the SEC may open an eight-day window period in January next year, during which it might approve multiple Bitcoin Spot ETFs.

However, shortly after the ETH price skyrocketed, the cryptocurrency market suddenly experienced significant volatility. Bitcoin surged from around $35,000 to nearly $38,000, then quickly fell to around $36,300. ETH also briefly dropped below the $2,000 mark. Compared to mainstream assets, some small-cap cryptocurrencies saw even more severe pullbacks and pin action.

This severe market volatility has led to heavy losses for a large number of high-leverage contract traders. According to statistics from a data platform, within 24 hours, the total liquidations in the cryptocurrency market reached nearly $500 million, with long positions liquidating $219 million and short positions liquidating $274 million. By coin type, Bitcoin had the largest liquidation amount, approximately $167 million, followed by Ethereum, which had a liquidation of about $81.95 million.

Despite a brief pullback, the market has now stabilized again. Notably, concept coins related to Ethereum have performed strongly, especially its Staking concept coins, with multiple related projects recording nearly a 20% increase. This indicates that investors maintain an optimistic view of the long-term development prospects of the Ethereum ecosystem.