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Bitcoin (BTC) News Today: BTC-Spot ETF Trends Amidst SEC Scrutiny of ETH

By:
Bob Mason
Updated: Mar 31, 2024, 04:08 GMT+00:00

Key Points:

  • Bitcoin (BTC) fell by 0.44% on Saturday, ending the session at $69,722.
  • Falling bets on an H1 2024 Fed rate cut impacted BTC and the broader market further on Saturday.
  • On Sunday, crypto-spot ETF-related news and SEC activity warrant investor consideration.
Bitcoin (BTC) News Today

In this article:

BTC-Spot ETF Market Saw Net Inflows for the Week Ending March 28

On Saturday (March 30), BTC fell by 0.44%. Following a 1.07% loss on Friday, BTC ended the session at $69,722.

On Friday, there was no trading across the US BTC-spot ETF market to influence investor sentiment. The US markets were closed for the Good Friday holiday.

However, relatively modest net inflows left BTC on the back foot despite four consecutive days of net inflows.

In the shortened week, the BTC-spot ETF market saw total net inflows of $859.7 million in the week ending March 28. According to BitMEX Research,

  • iShares Bitcoin Trust (IBIT) saw net inflows of $616.6 million in the week ending March 28.
  • Fidelity Wise Origin Bitcoin Fund (FBTC) saw total net inflows of $610.5 million in the week ending March 28.
  • ARK 21Shares Bitcoin ETF (ARKB) also contributed, with total net inflows of $301.9 million.
  • However, Grayscale Bitcoin Trust (GBTC) saw total net outflows of $967.1 million.

Significantly, FBTC saw net inflows rebound from $79.4 million in the week ending March 22. IBIT saw net inflows fall from $828.3 million in the week ending March 22. However, GBTC saw net outflows slide from $2,001.3 million to $967.1 million.

The downward trend in GBTC net outflows suggested the effects of the court ruling on Genesis Global Holdco LLC subsided. In February, the bankruptcy courts ruled Genesis Global Holdco LLC may liquidate $1.3 billion of GBTC shares.

The Fed Effect on BTC and the Broader Crypto Market

Following US Core PCE Price Index numbers and Fed Chair Powell comments on Friday, BTC-spot ETF market flow data for Monday, April 1, needs consideration. Net BTC-spot ETF market outflows in response to uncertainty about an H1 2024 Fed rate cut could impact BTC and the broader market.

According to the CME FedWatch Tool, the probability of a June 25-basis point Fed rate cut declined from 66.7% to 61.0% in the week ending March 29. On Friday, Fed Chair Powell pressured BTC and the broader market, saying there was no rush to cut interest rates.

Ethereum (ETH) also ended the Saturday session in negative territory, falling 0.11% to $3,509.

Ethereum Developer Consensys Pushes the SEC for ETH-spot ETF Approvals

On Friday, Consensys sent a comment letter to the SEC regarding the ETH-spot ETF applications. The letter highlighted the inbuilt safeguards in Ethereum’s design, saying,

“Ethereum’s PoS implementation meets and even exceeds the security of Bitcoin’s Proof of Work (PoW), which underlies bitcoin-based ETFs that have already been approved for trading by the SEC.”

Consensys, a developer of Ether, recently became a topic of discussion. US government watchdog Empower Oversight sent a letter to FOIA requesting documents relating to former SEC Chair Jay Clayton. Empower Oversight claimed,

“In 2022, Mr. Clayton was named as an adviser for Electric Capital, a crypto-focused venture capital firm that was established in 2018, while Mr. Clayton was serving as SEC Chair. Notably, Electric Capital has invested in Consensys, which is a developer of Ether.”

The request for documents relates to an ongoing investigation into crypto conflicts of interest within the SEC. Empower Oversight alleged possible ethical violations and concerns regarding former Chair Clayton’s links with crypto-related firms. Clayton allegedly stated that Bitcoin was not a security while affirming a William Hinman statement that ETH was not a security.

After leaving the SEC, Clayton joined One River Asset Management, a BTC and ETH-focused hedge fund. Empower Oversight also claimed that Clayton became an advisor to Electric Capital in 2022. Electric Capital is a crypto-focused venture capital firm invested in Consensys.

William Hinman is a former SEC director who stated BTC and ETH are not securities in 2018. Hinman is a focal point for Empower Oversight and remains a central figure in the SEC vs. Ripple case.

Technical Analysis

Bitcoin Analysis

BTC sat comfortably above the 50-day and 200-day EMAs, affirming the bullish price signals.

A break above the Wednesday high of $71,819 could support a move to the March 14 ATH of $73,808.

On Sunday, BTC-spot ETF market-related chatter and SEC activity need investor consideration.

However, a fall through the $69,000 support level could signal a BTC drop to the $64,000 support level.

With a 14-Daily RSI reading of 58.35, BTC may move to the ATH of $73,808 before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD 310324 Daily Chart

Ethereum Analysis

ETH remained above the 50-day and 200-day EMAs, affirming the bullish price signals.

A breakout from the current week high of $3,678 could give the bulls a run at the $3,835 resistance level. An ETH break above the $3,835 resistance level could support a move to the $4,000 handle.

Investors should monitor ETH-spot ETF chatter.

Conversely, an ETH drop below the $3,480 support level could give the bears a run at the 50-day EMA. A fall through the 50-day EMA could signal an ETH drop to the $3,244 support level.

The 14-period Daily RSI reading of 51.17 indicates an ETH move to the $4,000 level before entering overbought territory.

ETH Daily Chart sends bullish price signals.
ETHUSD 310324 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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