Crypto News Today: Progress Toward a Spot-ETF Market Remains the Focal Point

Key Insights:

• BTC rallied 3.35% on Wednesday, ending the session at $43,689.
• Progress toward a BTC-spot ETF market fueled a positive mid-week session.
• On Thursday, BTC-spot ETF-related news, SEC activity, and lawmaker scrutiny will influence buyer demand.

Bitcoin rallied 3.35% on Wednesday, December 20

Bitcoin (BTC) rallied 3.35% on Wednesday. Reversing a 0.86% loss from Tuesday, BTC ended the Wednesday session at $43,689. Significantly, BTC revisited the $44,000 handle for the first time since December 10.

Issuers had more meetings with the SEC this week, discussing In-kind and Cash creations and redemptions. Bloomberg Intelligence ETF Analyst James Seyffart kept investors updated.

Seyffart shared the meeting memorandum for a Grayscale meeting with the SEC to discuss the Grayscale Bitcoin Trust. Grayscale continues pursuing the In-kind creations/redemptions structure despite Invesco and BlackRock (BLK) eventually agreeing to follow the SEC lead on Cash Creations. Grayscale argued that BTC-spot ETPs should offer both In-kind and Cash creations and redemptions in a presentation to the SEC.

Continued dialogue between issuers and the SEC raised hopes of a pre-holiday approval. However, the SEC may wait until the January 5-10 approval window and approve a batch of BTC-spot ETFs. Seyffart previously favored a batch approval, noting the SEC would want to avoid accusations of playing kingmaker.

Senator Warren and the Digital Asset Anti-Money Laundering Act

On Wednesday, Coinbase (COIN) CEO Brian Armstrong shared a speech by Senator Roger Marshall. Senator Marshall stated he and Senator Warren authored the Digital Asset Anti-Money Laundering Act with the help of the American Bankers Association. The video demonstrated the collusion of anti-crypto lawmakers with US banks to target the digital asset space.

Notably, Senator Marshall referenced the Banking Committee Hearing from earlier this month. During the hearing, JPMorgan Chase CEO Jamie Dimon delivered a tirade about crypto, concluding,

“If I was government, I would close it down.”

Armstrong had this to say about the speech,

“Senators Warren and Marshall now lobbying for big banks. Being anti-crypto is a really bad political strategy going into 2024.”

Armstrong also shared statistics linked to Coinbase’s Standwithcrypto.org campaign. According to the stats, 52 million Americans have used crypto, with almost one million advocates calling for sensible crypto policies.

Technical Analysis

Bitcoin Analysis

BTC sat above the 50-day and 200-day EMAs, sending bullish price signals.

A BTC return to the $44,000 handle would support a move to the $44,690 resistance level and the December 8 high of $44,747.

On Thursday, progress toward a BTC-spot ETF market will continue to drive buyer demand for BTC. However, SEC activity and US lawmakers also need consideration.

A fall break below the $42,968 support level would bring sub-$42,000 levels into view.

The 14-Daily RSI reading, 61.80, suggests a BTC move to the $44,690 resistance level before entering overbought territory.

Ethereum Analysis

ETH held above the 50-day and 200-day EMAs, sending bullish price signals.

An ETH move to the $2,200 handle would bring the $2,300 resistance level into play.

However, a fall through the $2,143 support level would give the bears a run at the 50-day EMA.

The 14-period Daily RSI at 51.67 indicates an ETH break above the $2,300 resistance level before entering overbought territory.