Crypto Market Sees Record Short Squeeze as SEC Approves Digital Commodities
The cryptocurrency market saw significant growth on September 4, 2026, driven by a short squeeze and major macroeconomic developments. A total of $566.90 million was forcibly liquidated from 105,019 traders over the past 24 hours, with $478.91 million coming from short positions.
The US spot Bitcoin ETFs recorded daily inflows of $730.87 million, while Ethereum ETFs added $141.24 million, triggering $115.08 million in ETH short liquidations.
The SEC granted accelerated approval to Nasdaq Texas, LLC to amend Rule 5711(d) governing Commodity-Based Trust Shares, establishing a definition of 'digital commodity' within the exchange's rules and allowing funds to hold up to 15% of their net asset value (NAV) in instruments that initially fail to meet strict listing criteria.
This development brings together a chain of decisions made in 2025 and 2026, including the reduction of the approval period for crypto ETPs from 240 to 75 days and the joint SEC and CFTC interpretation establishing a list of crypto commodities.