Crypto News Today: BTC-Spot ETFs Remain Focal Point Despite Warnings

Key Insights:

• BTC declined by 0.27% on Thursday, ending the session at $39,981, with ETH declining by 0.74%.
• Investors continued to respond to BTC-spot ETF trends, with net outflows impacting buyer demand for BTC.
• On Friday, BTC-spot ETF-related updates, SEC v crypto case-related updates, and US inflation numbers warrant investor attention.

Bitcoin-Spot ETF Saw Softer Inflows on Wednesday

BTC declined by 0.27% on Thursday. Partially reversing a 0.37% gain from Wednesday, BTC ended the day at $39,981. Significantly, BTC wrapped up the day below the $40,000 handle for the second time in three sessions.

On Thursday, Bloomberg Intelligence ETH analyst James Seyffart joined a growing chorus of market experts warning ETFs are not the market, saying,

“Don’t know who needs to hear this. But ETFs aren’t THE market themselves. Yes, they’re now a big slice of the pie but there’s a lot more to the pie. Bitcoin ETF inflows can coincide with falling bitcoin prices. Outflows can coincide with rising prices. Shouldn’t be confusing?”

Nonetheless, BTC-spot ETF-related news continued to grab the headlines. Investor anticipation of the SEC approving the first batch of BTC-spot ETFs sent BTC to a January high of $49,023 before the retreat to sub-$40,000.

Seyffart shared BTC-spot ETF trading volumes and flows for day nine, saying,

“Day 9 complete for the Bitcoin ETFs. BlackRock only took in $66 million. -$158 million outflow for the entire group which is the largest single-day net outflow so far.”

Notably, outflows from GBTC slowed from $515.3 million to $429.3 million. A continued downward trend in GBTC outflows could stabilize BTC as the BTC halving event nears.

However, BTC-spot ETFs recorded net inflows of $270.9 million, excluding GBTC, down from $409.2 million on day eight of trading.

Fidelity Wise Origin Bitcoin Fund (FBTC) led the way, with net inflows of $125.7 million, followed by iShares Bitcoin Trust (IBIT) and ARK 21Shares Bitcoin ETF (ARKB).

The markets continued to put BTC-spot ETF metrics under the spotlight. Downward net inflow trends influenced buyer appetite for BTC.

Crypto Expert Considers Grayscale Outflows and BTC-Spot ETF Inflows a Key Metric

Recently, Bitwise Chief Investment Officer Matt Hogan shared his views on the ETF market influences and BTC price trends, saying,

“This is not, strictly speaking, an ETF-led sell-off. The ETFs are net buyers of Bitcoin (GBTC included). This is an ETF Expectations-led sell-off. The market front-ran the ETF approval by piling into both spot Bitcoin and Bitcoin derivatives. It expected larger net flows into ETFs than we’ve gotten so far, and is now unwinding that bet.”

Hogan concluded,

“IMO just as the market overestimated the short-term impact of ETFs, it is underestimating the long-term impact.”

One member of the crypto community questioned the comment about GBTC being a net buyer, to which Hogan replied,

“GBTC is a net seller. But ETFs as a whole are net buyers, with the new ETFs buying more BTC than GBTC is selling.”

However, BTC-spot ETF numbers for trading days seven to nine revealed net outflows.

Technical Analysis

Bitcoin Analysis

BTC remained below the 50-day EMA while sitting above the 200-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.

A BTC breakout from the $40,000 handle would give the bulls a run at the 50-day EMA. A move through the 50-day EMA would bring the $42,968 resistance level into play.

On Friday, crypto-spot ETF-related news, SEC v crypto case-related updates, and US lawmaker chatter warrant investor attention.

However, a break below the $39,861 support level would support a fall toward the $37,986 support level.

The 14-Daily RSI reading, 37.82, indicates a BTC fall through the $39,000 handle before entering oversold territory.

Ethereum Analysis

ETH sat below the 50-day EMA while holding above the 200-day EMA, sending bearish near-term but bullish longer-term price signals.

An ETH return to the $2,250 handle would support a move to the $2,300 resistance level and 50-day EMA into play. Selling pressure could intensify at the $2,300 resistance level. The 50-day EMA is confluent with the $2,300 resistance level.

Investors should track ETH-spot ETF-related commentary.

However, a drop below the $2,200 handle would bring the $2,143 support level into play.

The 14-period Daily RSI at 38.96 suggests an ETH fall to the $2,143 support level before entering oversold territory.