Bitcoin (BTC) News Today: BTC-Spot ETF Flows and ETH-Spot ETFs in Focus

FOMC Meeting Minutes Overshadow US BTC-Spot ETF Market Inflows

On Wednesday (May 22), bitcoin (BTC) declined by 0.84%. Following a 0.80% loss on Tuesday (May 21), BTC ended the session at $69,055.

US BTC-spot ETF market flow data for Tuesday drove buyer demand for BTC early in the Wednesday session. According to Farside Investors, the US BTC-spot ETF market saw total net inflows of $305.7 million, up from $237.2 million on Monday (May 20). Significantly, iShares Bitcoin Trust (IBIT) reported net inflows of $290.0 million, its highest since April 5.

However, jitters about a Fed interest rate hike overshadowed the flow data from Tuesday. The FOMC Meeting Minutes showed a willingness among members to hike interest rates to return inflation to the 2% target.

Nevertheless, US BTC-spot ETF flow trends for Wednesday drove buyer demand for BTC going into the Thursday (May 23) session.

According to Farside Investors,

• Grayscale Bitcoin Trust (GBTC) saw net outflows of $16.1 million, the first in six sessions.
• Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $74.6 million, up from $25.8 million on Tuesday.
• ARK 21Shares Bitcoin ETF had net inflows of $3.5 million.
• Excluding iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market reported total net inflows of $62.0 million, signaling an 8-day inflow streak.

Later in the Thursday session, US economic indicators could influence sentiment toward the Fed rate path. Better-than-expected US Services PMI and jobless claims data could fuel speculation about a Fed interest rate hike.

US BTC-spot ETF market flow data for Thursday also needs consideration.

The SEC and the ETH-Spot ETF Applications

Beyond the BTC-spot ETF market, the SEC approval or disapproval of the ETH-spot ETF applications will impact buyer demand for ethereum (ETH) and the broader crypto market.

Bloomberg Intelligence ETF Analyst James Seyffart shared updates on 19b-4 amendment filings. Grayscale, BlackRock (BLK), and Bitwise Invest were among the issuers to file 19b-4 amendments. ARK/21 Shares, Fidelity, Franklin, Invesco/Galaxy, and VanEck filed their 19b-4 amendments on Tuesday.

Seyffart believed the Whitehouse pressured the SEC to U-turn on ETH-spot ETFs, saying,

“This was a political decision. […] I think this was a decision from above, possibly above the SEC’s head, like Biden, the Biden Admin that’s decided that it’s not worth fighting this. We might even lose in court if we try to do this and somebody sues us and we’re losing the votes. People are going to go to Trump solely because of the stance here, and it’s just not worth it.”

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas expects the SEC decisions at around 1600 New Jersey time.

Technical Analysis

Bitcoin Analysis

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

A BTC breakout from $70,000 could support a move to the $73,808 all-time high. A breakout from $73,808 could give the bulls a run at the $75,000 handle.

US economic indicators, US BTC-spot ETF market flow data, and the SEC decision on the ETH-spot ETF applications need consideration.

Conversely, a BTC break below the $69,000 support level could give the bears a run at the 50-day EMA and the $64,000 resistance level.

With a 61.57 14-Daily RSI reading, BTC could climb to the all-time high of $73,808 before entering overbought territory.

Ethereum Analysis

ETH sat comfortably above the 50-day and 200-day EMAs, confirming the bullish price trends.

An ETH move through the $3,835 resistance level could give the bulls a run at the $4,000 handle. A breakout from the $4,000 handle could support a move to the March high of $4,091.

Conversely, an ETH drop below the $3,600 handle could give the bears a run at the $3,480 support level.

The 14-period Daily RSI reading, 70.16, shows ETH in overbought territory. Selling pressure could intensify at the $3,800 handle.