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Bitcoin News Today: ETF Net Flows, Wall Street Whispers, and Regulatory Turbulence

By:
Bob Mason
Published: Feb 16, 2024, 06:01 UTC

Proposed legislation seeks to reshape crypto oversight, as lawmakers aim to balance innovation with regulatory safeguards.

Bitcoin News Today

In this article:

Key Insights:

  • BTC gained 0.12% on Thursday, ending the session at $51,951.
  • A pullback in BTC inflows into the BTC-spot ETF market capped the upside.
  • On Friday, US regulatory chatter and BTC-spot ETF-related data need consideration.

BTC Revisits the $52,000 Handle

On Thursday, BTC gained 0.12%. Following a 4.38% rally on Wednesday, BTC ended the session at $51,951. Significantly, BTC revisited the $52,000 handle for the second time since December 27, 2021.

BTC-Spot ETF Market: Net Inflows Retreat on Valentine’s Day

BTC-spot ETF market flow data for February 14 influenced BTC price trends on Thursday (February 14).

Net inflows declined from $631.2 million (February 13) to $339.8 million (February 14), according to figures from BitMEX Research. Despite the sharp pullback in net inflows, net inflows were the seventh highest since Day 1 of trading for the Nine (January 11, 2024).

iShares Bitcoin Trust (IBIT) led the way for the fifth consecutive session, with net inflows of $224.3 million. Fidelity Wise Origin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $118.9 million and $101.50 million, respectively. However, Grayscale Bitcoin Trust (GBTC) recorded net outflows of $131.2 million, the largest since February 2.

BTC-spot ETF Market inflows pullback on February 14.
BitMex Flows for 14/02/24

Despite the pullback in net inflows, Wall Street interest in the BTC-spot ETF market continued to grow.

Early Flow Data for February 15 Send Mixed Signals

BitMEX Research shared the available flow data for February 15 on Friday. Grayscale Bitcoin Trust (GBTC) saw net outflows of $175 million, up from $131.2 million on February 14.

In contrast, Bitwise Invest CEO Hunter Horsley announced $126.5 million of net inflows for the Bitwise Bitcoin ETF (BITB) on February 15. BITB last broke the $100 million net inflow threshold on day one of trading, with net inflows of $237.9 million.

Beyond the numbers, US lawmakers garnered investor interest.

Wall Street and Main Street Pushing for SEC Rule Changes

A Bloomberg article reported powerful interest groups attempting to persuade the US SEC to amend crypto accounting guidelines. As part of the existing regulations, public companies must count the crypto they custodize as liabilities on the balance sheet. The required capital to protect against losses means it is ineffective to become a custodian for crypto assets.

As a result, US banks could not break into the BTC-spot ETF custody space before the SEC approved the Nine.

Interest groups include the American Bankers Association. The American Bankers Association assisted Senators Elizabeth Warren and Roger Marshall in drafting the US Digital Asset Anti-Money Laundering Act. Many consider the Digital Asset Anti-Money Laundering Act a legislative ban on crypto.

The Act proposes introducing bank-style anti-money laundering (AML) and countering the financing of terrorism (CFT) frameworks for the US digital asset space.

Notably, Senator Cynthia Lummis is reportedly attempting to get 30 signatures to discharge the petition. A discharge petition would put the legislation to a floor vote and possibly remove the need to record cryptos as liabilities.

Senators Cynthia Lummis and Kirsten Gillibrand proposed the Responsible Financial Innovation Act in 2022. The Act aims to give greater regulatory oversight to the CFTC and encourage innovation.

Technical Analysis

Bitcoin Analysis

BTC sat well above the 50-day and 200-day EMAs, sending the bullish price signals.

A BTC break above the Thursday high of $52,869 would bring the $55,000 handle into play.

US lawmakers and BTC-spot ETF market flows need consideration.

However, a drop below the $51,000 handle would bring the $50,500 support level into view.

The 14-Daily RSI reading, 82.32, shows BTC in overbought territory. Selling pressure may intensify at the Thursday high of $52,869.

BTC Daily Chart sends bullish price signals.
BTCUSD 160224 Daily Chart

Ethereum Analysis

ETH held well above the 50-day and 200-day EMAs, sending bullish price signals.

An ETH break above the Thursday high of $2,867 would bring the $3,000 handle into play.

ETH-spot ETF-related updates need consideration.

However, an ETH drop below the $2,000 handle would bring the $2,650 support level into play.

The 14-period Daily RSI at 79.03 shows ETH in overbought territory. Selling pressure may intensify at the Thursday high of $2,867.

ETH Daily Chart sends bullish price signals.
ETHUSD 160224 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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