Crypto News Today: BTC-Spot ETF Outflows, ETH-Spot ETF Delays, and SEC v Coinbase

Key Insights:

• BTC gained 0.37% on Wednesday, ending the session at $40,089, while ETH ended the session down 0.34%.
• Crypto-spot ETF-related updates influenced buyer demand for cryptos.
• On Thursday, SEC v crypto case-related updates, US lawmaker chatter, and BTC-spot ETF need investor consideration.

Bitcoin-Spot ETF Statistics Deliver Mixed Readings

BTC rose 0.37% on Wednesday. Following a 0.93% gain on Tuesday, BTC ended the day at $40,089. Significantly, BTC held onto the $40,000 handle.

On Wednesday, Bloomberg Intelligence Analyst James Seyffart shared day eight volumes and flows. Significantly, the BTC-spot ETF market recorded a second session of net outflows. After outflows of $76 million on day seven, day eight outflows increased to $106.0 million.

However, excluding Grayscale Bitcoin Trust (GBTC), the Nine recorded net inflows of $409.3 million. (The Nine refers to the first nine BTC-spot ETFs).

However, trading volumes were down on day eight compared with day seven. Nonetheless, Fidelity continued to see lower net inflows than iShares while seeing higher trading volumes.

On Wednesday, transparency also became the topic of discussion. Bitwise posted their bitcoin address for Bitwise Bitcoin ETP Trust (BITB), saying,

“Announcement: Today the Bitwise Bitcoin ETF (BITB) becomes the first US bitcoin ETF to publish the bitcoin address of its holdings. Now anyone can verify BITB’s holdings and flows directly on the blockchain. Onchain transparency is core to Bitcoin’s ethos. We’re proud to walk the walk with BITB.”

Ethereum (ETH) Extends Losing Streak to Five Sessions

On Wednesday, ETH fell by 0.33%. Following a 3.03% loss on Tuesday, ETH ended the session at $2,235. Significantly, ETH dropped below the $2,200 handle for the second consecutive session.

Investors responded to news of the SEC delaying the BlackRock (BLK)-spot ETF.

Bloomberg Intelligence ETF analyst James Seyffart reacted to the news, saying,

“Spot Ethereum ETF Delays will continue to happen sporadically over the next few months. Next data that matters is May 23rd.”

Last week, the SEC delayed the decision on the Fidelity ETH-spot ETF.

However, the SEC has sent mixed messages about approving crypto-spot ETFs beyond BTC. SEC Chair Gary Gensler recently warned,

“Importantly, today’s Commission action is cabined to ETPs holding one non-security commodity, bitcoin. It should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.”

In contrast, SEC Commissioner Hester Peirce recently said,

“That’s not how we’re going to do our approvals. […]. We shouldn’t need a court to tell us that our approach is arbitrary and capricious in order for us to get it right.”

BTC-spot ETF-related news remains a focal point for the crypto market. However, ongoing SEC cases against Ripple and Coinbase (COIN) also need consideration. Significantly, the outcome of the SEC v Coinbase case could influence the evolution of the US crypto-spot ETF market.

After the January 17 court hearing, investors await the court ruling on the Coinbase motion to dismiss (MTD). If the court grants the Coinbase MTD, the courts could close the matter of crypto exchanges selling unregistered tokens. A ruling for Coinbase could also pave the way to a crypto-spot ETF market.

Coinbase filed a motion to dismiss arguing the SEC lacks the statutory authority to regulate US crypto exchanges.

However, as in the ongoing SEC v Ripple case, the SEC could plan to appeal against any adverse rulings.

Technical Analysis

Bitcoin Analysis

BTC hovered below the 50-day EMA while remaining above the 200-day EMA. The EMAs affirmed bearish near-term but bullish longer-term price signals.

A BTC return to the $41,000 handle would give the bulls a run at the 50-day EMA. A break above the 50-day EMA would support a move toward the $42,968 resistance level.

On Thursday, crypto-spot ETF-related updates, SEC v crypto case-related news, and US lawmaker scrutiny need consideration.

However, a fall through the $39,861 support level would bring the $37,986 support level into play.

The 14-Daily RSI reading, 38.84, suggests a BTC drop below the Tuesday low of $38,547 before entering oversold territory.

Ethereum Analysis

ETH remained below the 50-day EMA while sitting above the 200-day EMA, affirming bearish near-term but bullish longer-term price signals.

An ETH breakout from the $2,250 handle would bring the $2,300 resistance level and 50-day EMA into play. A break above the 50-day EMA would support a move toward the $2,457 resistance level.

Investors should keep a close watch on updates related to ETH-spot ETFs.

However, a fall through the $2,200 handle would give the bears a run at the $2,143 support level.

The 14-period Daily RSI at 39.66 indicates an ETH drop to the $2,143 support level before entering oversold territory.