The Ethereum (ETH) market turned choppy as Grayscale Investments applied to withdraw its Ether futures ETF.
Grayscale’s sudden decision has triggered a flurry of activity, with traders rushing to adjust their positions in response to the shifting landscape. Additionally, NYSE Arca’s withdrawal of a proposed rule change regarding Grayscale’s Ethereum Futures Trust ETF has exacerbated the uncertainty.
The move, reported by the US Securities and Exchange Commission, came just as traders brace for the SEC’s decision on spot Ethereum ETFs, scheduled for May 30. Amidst these developments, short positions in Ether have surged. Traders have stacked up their short positions over the last 24 hours, with liquidation maps indicating $345 million at risk if the price rebounds by 3%.
Meanwhile, the price of Ethereum has also declined. As of writing this article, the ETH token is barely above the $3K mark, down by over 2.5% in the past 24 hours.Â