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Crypto News Today: Crypto Market Reacts to the BTC-Spot ETF Approvals

By:
Bob Mason
Published: Jan 11, 2024, 03:09 GMT+00:00

Despite the BTC-spot ETF approvals, SEC Chair Gary Gensler continued to highlight risks associated with crypto investments. SEC v Coinbase is pivotal.

Crypto News Today

In this article:

Key Insights:

  • Bitcoin (BTC) gained just 1.13% on Wednesday, ending the session at $46,716.
  • On Wednesday, the SEC approved the first batch of BTC-spot ETFs, raising the prospect of a crypto-spot ETF market.
  • BTC-spot ETF fund inflows, SEC activity, and US lawmaker chatter remain focal points.

Bitcoin-Spot ETF: SEC Approves the First Batch

BTC gained 1.13% on Wednesday. Partially reversing a 1.76% loss from Tuesday, BTC ended the day at $46,716. Significantly, BTC fell short of the $47,000 handle despite the SEC approving the first batch of BTC-spot ETFs.

On Wednesday, the SEC approved the first wave of BTC-spot ETFs. SEC Chair Gary Gensler released a statement, saying,

“Today’s action does not approve or endorse crypto trading platforms or intermediaries, which, for the most part, are non-compliant with the federal securities laws and often have conflicts of interest.”

The SEC Chair also targeted cryptos, stating,

“While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad of risks associated with bitcoin and products whose value is tied to crypto.”

Notably, SEC Chair Gary Gensler continues to view crypto exchanges as non-compliant. However, the SEC v Coinbase (COIN) case could address the matter if lawmakers fail to roll out crypto legislation to regulate the US crypto market.

SEC v Crypto: Coinbase Case Pivotal for the US Crypto Market

In June, the SEC filed charges against Coinbase for allegedly operating as an unregistered securities exchange, broker, and clearing agency. The SEC v Coinbase case could become a landmark case, with a Coinbase victory likely to be a boon for the crypto market.

On January 17, the SEC and Coinbase will give oral arguments on the Coinbase motion to dismiss (MTD). Coinbase filed an MTD in August, arguing the SEC lacks the statutory authority to regulate crypto exchanges. Significantly, Senator Cynthia Lummis backed the MTD, filing an amicus curiae brief.

Senator Lummis reacted to the news of the SEC approving the first batch of BTC-spot ETFs, saying,

“I am thrilled the SEC granted approval for all 11 bitcoin spot exchange-traded funds.”

Senator Lummis shared her official statement, which said,

“The SEC’s decision to comply with the Grayscale court ruling and approve the pending Bitcoin spot ETFs to be listed on registered national securities exchanges is a historic decision for the crypto asset community. It will provide millions of Americans with easier access to crypto assets and allow them to benefit from professional managers and more competitive fees. This move demonstrates that responsible innovation in the crypto asset markets is possible and further underscores the need for the clear and commonsense framework Lummis-Gillibrand establishes in this space.”

Senator Lummis referred to the Lummis-Gillibrand Responsible Financial Innovation Act. Senators Cynthia Lummis and Kirsten Gillibrand proposed the bill in June 2022. The bill would grant the CFTC powers to regulate the US digital asset space.

Technical Analysis

Bitcoin Analysis

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

A BTC break above the $48,178 resistance level would support a move to the $50,500 resistance level.

On Thursday, the market focus remains on BTC-spot ETFs and the SEC.

However, a drop below the $46,020 support level would give the bears a run at the $44,690 support level.

The 14-Daily RSI reading, 63.92, suggests a BTC move through the $48,178 resistance level before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD 110124 Daily Chart

Ethereum Analysis

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

An ETH break above the $2,650 resistance level would give the bulls a run at the $2,800 handle.

ETH-spot ETF-related chatter needs consideration.

However, a drop below the $2,500 handle would give the bears a run at the $2,457 support level.

The 14-period Daily RSI at 68.32 shows ETH on the border with overbought territory. Selling pressure could intensify at the $2,650 resistance level.

ETH Daily Chart sends bullish price signals.
ETHUSD 110124 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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