Crypto News Today: BTC-Spot ETF Activity Picks Up Ahead of SEC-Deadline

Key Insights:

• BTC declined by 2.67% on Tuesday, ending the session at $42,583.
• On Tuesday, BTC-spot ETF-related news tested the buyer appetite for BTC and the broader market.
• Investors will remain focussed on S-1 amendments as the December 29, 2023, deadline for BTC-spot ETF amendment filings approaches.

Bitcoin Dives Below the $42,000 Handle

Bitcoin (BTC) declined by 2.67% on Tuesday. Reversing a 0.80% gain from Monday, BTC ended the session at $42,583. Significantly, BTC fell below the $42,000 handle for the first time since December 19.

BTC-Spot ETF-related news continued to draw investor interest on Tuesday. BTC-spot ETF issuers responded to the SEC-imposed deadline of December 29 to file amended S-1s. Significantly, the amendments must not refer to in-kind creations.

Bloomberg Intelligence ETF Analyst James Seyffart shared the latest updates. Significantly, Grayscale filed an amendment, accepting cash-only creation.

Finance lawyer Scott Johnsson had this to say about the In-kind vs. Cash Creations issue,

“The SEC promulgated rulemaking for digital asset safekeeping. Despite the fact that BDs and exchanges apparently believe they could comply with the rule and offer in-kind, the SEC will refuse to approve amendments to exchange rules that would allow this because they’re not convinced that it is possible to comply with their rules.”

Johnsson added,

“And despite the SEC being tasked with investor protection, this results in….. less protection for investors via a wonderful new novel product. Hey, but at least you get a new risk factor protecting you by informing you that, despite all other spot commodity ETFs operating with in-kind models, this must be done in a novel way via cash and who knows if that will work!”

However, news also hit the wires of Barry Silbert (Chairman) and Mark Murphy planning to step down from the Board of Grayscale Investments on January 1, 2024.

Meetings between the SEC and issuers also continued at the eleventh hour. Hashdex reportedly met with the SEC on Tuesday. Unlike previous meetings, the Hashdex met with SEC Chair Gensler’s office.

Despite the ongoing meetings and filings, numerous issuers must file amendments before the December 29 deadline.

Technical Analysis

Bitcoin Analysis

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

A BTC break above the $42,968 resistance level would support a move toward the $44,690 resistance level and the December 8 high of $44,747.

On Wednesday, BTC-spot ETF activity will be the focal point for investors.

However, a drop below the $42,000 handle would bring the $39,661 support level into play.

The 14-Daily RSI reading, 51.85, indicates a BTC move to the $44,690 resistance level before entering overbought territory.

Ethereum Analysis

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

An ETH break out from $2,250 would give the bulls a run at the $2,300 resistance level.

However, a fall through the $2,200 handle would bring the $2,143 support level and 50-day EMA into play. Buying pressure could intensify at the $2,143 handle. The 50-day EMA is confluent with the $2,143 support level.

The 14-period Daily RSI at 50.52 suggests an ETH move to the $2,400 handle before entering overbought territory.