Crypto News: Circle Eyes 2024 IPO as Investors Await SEC v Coinbase News

Key Insights:

• Circle, the stablecoin issuer of USD Coin, is in talks for a 2024 IPO.
• A significant date in the SEC v Coinbase case is approaching.
• BTC-spot ETF-related news draws interest as investors await the SEC decisions on the crypto-spot ETF applications.

Circle Considers 2024 IPO

On Wednesday, news hit the wires of Circle Internet Financial Ltd. (Circle) considering a 2024 IPO. According to Bloomberg, Circle is in talks with advisers in preparation for a possible IPO. Circle had a valuation of $9 billion in its last attempt to go public in 2022.

Circle is the issuer of USD Coin (USDC), the second largest stablecoin by market capitalization, behind USDT.

Significantly, Circle could issue an IPO ahead of Ripple despite the recent rumors of a Ripple IPO circulating. Ripple is currently in a legal battle with the SEC and would need SEC approval for an IPO. The SEC v Ripple case has been ongoing since December 2020.

Amicus curiae attorney and CryptoLaw US founder John E. Deaton recently shared his views on a Ripple IPO, saying,

“Ripple has ZERO plans of issuing an IPO before June 2024.”

However, Deaton did disclose that he had ZERO insider information.

SEC v Coinbase Case Update

Coinbase (COIN) went public in April 2021. Despite going public, the SEC took legal action against Coinbase in June 2023. The SEC filed charges against Coinbase for allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additional charges included the unregistered offering and selling of securities in connection with its staking-as-a-service program.

Significantly, Coinbase filed a motion to dismiss (MTD) the charges in August 2023. After the SEC opposition filing to the MTD and the Coinbase reply brief, the two parties must submit a proposed schedule for the January 17 court date for Oral arguments. The court deadline for submissions is November 17.

Anticipation of BTC Spot ETFs

On Tuesday, Bloomberg Intelligence ETF Analyst Eric Balchunas shared the latest the on BTC-spot ETF market, saying,

“SCOOP: Ex-Cantor Execs Launching Crypto Lending Platform for Expected Spot Bitcoin ETFs (which should help Aps).”

According to the Bloomberg report, Cantor Fitzgerald execs launched Digital Prime Technologies Tokenet, a crypto lending platform established to serve operators of BTC-spot ETFs. Tokenet offers the secure and efficient lending of digital assets.

While the markets expect the SEC to approve one, some, or all of the spot ETF applications, the lack of an SEC approval has left BTC in a sideways trend.

Technical Analysis

Bitcoin Analysis

BTC remained above the 50-day and 200-day EMAs.

A BTC move through the November 2 high of $36,024 would support a break above the $36,400 resistance level.

BTC-spot ETF-related news will remain the focal point on Wednesday. News updates from the SEC will need consideration.

A BTC fall through the $35,265 support level would give the bears a run at the $34,000 handle.

The 14-Daily RSI reading of 76.93 shows BTC remaining in overbought territory. Selling pressure could intensify at current levels without favorable BTC-spot ETF-related news.

Ethereum Analysis

ETH remained above the 50-day and 200-day EMAs. Significantly, a bullish cross of the 50-day EMA through the 200-day EMA sent bullish price signals despite ETH being in oversold territory.

An ETH move through $1,900 would bring the $1,926 resistance level and $2,000 into play.

However, a break below the trend line would give the bears a run at the $1,805 support level.

The 14-period Daily RSI of 71.73 shows ETH in overbought territory. Without a favorable crypto event, selling pressure may intensify at the $1,926 resistance level.