Crypto News Today: BTC-Spot ETFs and SEC v Ripple and Coinbase in Focus

Key Insights:

• BTC gained 0.90% on Saturday, ending the session at $42,232, with ETH gaining 0.03%.
• GBTC outflows, net BTC-spot ETF market inflows, and SEC v crypto case-related updates drew investor interest.
• On Sunday, crypto-spot ETF chatter, US lawmaker scrutiny, and SEC vs. crypto case-related news need consideration.

Bitcoin-Spot ETF Market: The Trend that Returned BTC to $42,000

BTC gained 0.90% on Saturday. Following a 4.68% rally on Friday, BTC ended the day at $42,232. BTC held onto the $42,000 handle for the first time in ten sessions.

Investors continued responding to BTC-spot ETF-related volume and flow data. Significantly, the downward trend in Grayscale Bitcoin Trust (GBTC) outflows drove buyer demand for BTC.

On Saturday, BitMEX Research released the latest flow BTC-spot ETF flow data. GBTC outflows reached $640.5 million on day 7 of trading before falling to $255.1 million on day 11. Significantly, the BTC-spot ETF market recorded net inflows for the first time in five sessions.

Importantly, Bloomberg Intelligence ETF analyst Eric Balchunas vouched for the BitMEX Research numbers.

The evolution of the Crypto-spot ETF market will remain an investor focal point. New BTC-spot ETF launches and the approval of altcoin-spot ETFs could materially shift the US crypto landscape. However, SEC cases against crypto firms need consideration.

SEC v Crypto: Crypto Community Await Pivotal Court Rulings

The ongoing SEC v Ripple case continues to draw investor attention. In July, Judge Torres ruled that XRP is not a security in programmatic sales while ruling that XRP is a security in sales to institutional investors.

The SEC and Ripple are progressing through remedies-related discovery. After remedies-related discovery, the SEC and Ripple will argue for and against a punitive penalty for XRP sales to institutional investors. Ripple failed to register XRP as a security, breaching Section 5 of the 1933 Securities Act.

While the ruling will draw investor interest, SEC plans to appeal the Programmatic Sales of XRP ruling remains an XRP headwind.

The SEC v Ripple case has been ongoing since December 2020. However, the SEC v Coinbase (COIN) case could have more significant implications for the US digital asset space. On January 17, Judge Katherine Failla heard oral arguments regarding the Coinbase motion to dismiss.

In August, Coinbase filed a motion to dismiss (MTD), arguing the SEC lacked the statutory authority to regulate crypto exchanges. Bloomberg Intelligence legal expert Elliot Stein awarded the hearing win to Coinbase, saying Coinbase provided Judge Failla with a more convincing definition of an investment contract.

If Judge Failla grants the Coinbase MTD, the courts could dilute SEC powers to regulate the US crypto market.

Coinbase CLO Grewal Discusses Revak v. SEC Realty Case

On Saturday, Amicus Curiae attorney John E. Deaton responded to a post from Coinbase Chief Legal Officer Paul Grewal, saying,

“When people brought up the district court ruling in LBRYcom, my response, every time, was: read the 2nd Circuit Revak case. LBRY was a case governed by the 1st Circuit & the SG case. The Ripple & Coinbase cases are governed by the 2nd Circuit & Revak.”

Grewal had this to say about the Revak v. SEC Realty Case,

“There’s so much to love about Revak v. SEC Realty (2d Cir.). But two things stand out above all others in its laying waste to the absurdity of an “ecosystem” access definition of an investment contract… 1/3”

Grewal provided two views,

“First, how perfect is it that the defendants named themselves “SEC”?

And

“Second: We do not interpret the Howey test to be so easily satisfied. If a common enterprise can be established by the mere showing that the fortunes of investors are tied to the efforts of the promoter, two separate questions posed by Howey — whether a common enterprise exists and whether the investors’ profits are to be derived solely from the efforts of others — are effectively merged into a single inquiry: “whether the fortuity of the investments collectively is essentially dependent upon promoter expertise.”

Technical Analysis

Bitcoin Analysis

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

A BTC break above the $42,968 resistance level would support a move to the $44,690 resistance level.

On Sunday, SEC v crypto case-related news and BTC-spot ETF-related chatter warrant investor attention.

However, a drop below the 50-day EMA would give the bears a run at the $39,861 support level.

The 14-Daily RSI reading, 50.80, indicates a BTC move to the $44,690 resistance level before entering overbought 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 move through the $2,300 resistance level and the 50-day EMA would bring the $2,457 resistance level 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 continue to monitor ETH-spot ETF-related news.

However, a drop below the $2,200 handle would support a fall to the $2,143 support level.

The 14-period Daily RSI at 44.67 suggests an ETH fall to the $2,143 support level before entering oversold territory.