Bitcoin (BTC) News Today: ETF Market Insights Amid SEC Case Drama

BTC-Spot ETF Market Sees Net Inflows Surge on Tuesday, March 26

On Wednesday, BTC declined by 0.76%. Reversing a 0.44% gain from Tuesday, BTC ended the session at $69,532.

BTC-spot ETF market flow data for Tuesday (March 26) sent BTC to an intraday high of $71,821. According to figures from BitMEX Research, the BTC-spot ETF market saw total net inflows of $418 million, up from $15.7 million on March 25. Significantly,

• Fidelity Wise Origin Bitcoin Fund (FBTC) led the way. FBTC saw net inflows increase from $261.8 million (March 25) to $279.1 million (March 26).
• iShares Bitcoin Trust (IBIT) saw net inflows rise from $35.5 million (March 25) to $162.2 million (March 26).
• Grayscale Bitcoin Trust (GBTC) saw net outflows of $212.3 million on March 26.

The March 26 numbers revealed that outflows are not only attributable to the Genesis bankruptcy case ruling. In February, the courts granted a Genesis Global Holdco LLC request to sell GBTC shares worth about $1.3 billion.

Flow data for March 26 also showed that IBIT lost ground to the Nine. Excluding FBTC, IBIT, and GBTC, the BTC-spot ETF market saw net inflows of $189.0 million. Net inflows for the Seven were the highest since March 12 ($223.4 million).

Preliminary figures from Farside Investors suggest the possibility of net outflows in the BTC-spot ETF market on Wednesday (March 27).

• GBTC saw net outflows of $300 million on March 27.
• FIBTC saw net inflows of $1.5 million, the lowest since launching on January 11.

However, late newcomer Hashdex Bitcoin ETF had no net inflows.

SEC vs. Coinbase Ruling Impacts Evolution of Crypto-Spot ETF Market

A court ruling from the ongoing SEC vs. Coinbase case likely overshadowed the upswing in BTC-spot ETF market inflows. On Wednesday, the court partially granted the Coinbase Motion to Dismiss (MTD). However, the court did not grant the motion to dismiss charges for operating as an unregistered securities exchange. The court ruling stated,

“The court concludes that because the well-placed allegations of the Complaint plausibly support the SEC’s claim that Coinbase operated as an unregistered intermediary of securities, Defendants’ motion must be denied in large part.”

The ruling came at a difficult juncture for the crypto market as debate rages on about the classification of ETH, etc.

Despite the uncertainty surrounding SEC plans vis-à-vis approving ETH-spot ETF applications, filings continued to roll in.

ETH-Spot ETF Market

On Wednesday, Fidelity filed an S-1 for the Fidelity Ethereum Fund. Fidelity previously filed the 19b-4. Notably, the S-1 is the first filing, not an amendment, diffusing hopes of a more engaging SEC.

Bloomberg Intelligence ETF Analyst shared the latest ETH-spot ETF table, saying,

“This is what the table looks like at the moment. It doesn’t change our view at the moment. Still think we likely see denials in May. (though I do still need to read through this doc more but on the road today).”

At this stage, a flurry of amendment filings could refuel bets on the SEC approving the first batch of ETH-spot ETFs, with final deadlines in May 2024.

ETH declined by 2.44% to $3,500 on Wednesday (March 27). Significantly, ETH has fallen 14.5% from the March 12 high of $4,091. In contrast, BTC was down 5.8% from the March 14 ATH high of $73,808. The diverging pattern likely stems from sentiment toward the BTC halving event, the BTC-spot ETF market, and the chances of an ETH-spot ETF market.

Technical Analysis

Bitcoin Analysis

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

A breakout above the Wednesday (March 27) high of $71,821 could signal a potential move to the March 14 ATH of $73,808. A break above the ATH would bring the $75,000 handle into play.

On Thursday, BTC-spot ETF market flow data and SEC-related activity need consideration.

Conversely, a break below the $69,000 support level could give the bears a run at the $64,000 support level.

The 14-Daily RSI reading, 57.91, suggests a BTC move to the ATH of $73,808 before entering overbought territory.

Ethereum Analysis

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

An ETH return to the $3,600 handle would support a move to the $3,835 resistance level.

ETH-spot ETF-related updates warrants investor consideration.

Conversely, an ETH drop below the $3,480 support level could support a fall to the 50-day EMA. A break below the 50-day EMA would bring the $3,244 support level into view.

The 14-period Daily RSI reading of 50.35 suggests that ETH may break above the $3,835 resistance level before entering overbought territory.