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Bitcoin (BTC), Ether (ETH) in the doldrums as SEC ETF decision looms, Nvidia (NVDA) hits record highs
Bitcoin (BTC) and ether (ETH) recent gains consolidated early Thursday, lacking clear directional guidance ahead of the U.S. Securities and Exchange Commission’s (SEC) decision on VanEck’s ether spot ETF filing, expected later in the day.
BTC, the leading cryptocurrency by market value, traded with little change around $69,500, while Ether, the No. 2, remained stable around $3,700, according to CoinDesk data.
However, technical analysis and market positioning indicate a bullish undertone. Both cryptocurrencies maintained a strong position above their respective peers Ichimoku cloud linessuggesting a bullish outlook, an interpretation he echoed from analyst Josh Olszewicz on price increase, according to data monitored by Amberdata.
The bullish positioning is likely to stem from growing expectations that the SEC will approve spot ether ETFs, expanding demand for cryptocurrencies.
“The SEC is expected to approve US-listed ETH ETFs today. Hours before the Bitcoin ETF was approved, SEC Gensler tweeted that cryptocurrency investors should consider all potential risks before making any investments. Today, a tweet could arrive around 9 a.m. ET and would provide more clarity on the impending approval,” Markus Thielen, founder of 10x Research, said in a note to clients.
Thielen added that the Grayscale Ethereum Trust discount to net asset value it has shrunk to just 8% compared to 30% a week ago, implying at least “a 90% chance that an ETF will be approved.”
The change follows news this week that the SEC had asked for updates and changes from spot ether ETF applicants, signaling a potential approval.
“If spot ether ETFs are approved, it would signal a sharp shift in official attitudes towards the cryptocurrency industry; it also appears that hostility towards FIT21 is not as strong as we had feared,” Noelle Acheson, author of the popular Crypto Is Macro Now newsletter, he told CoinDesk, referring to the Financial Innovation and Technology for the 21st Century Act.
The U.S. House of Representatives on Wednesday past the act, which will clearly define whether cryptocurrencies are commodities or securities. Categorization as securities would mean rigorous SEC oversight. The legislation is also expected to establish the Commodity Futures Trading Commission (CFTC) as the primary regulator of digital assets alongside the SEC.
The bill now goes to the Senate, where its future is uncertain. Even if passed, President Joe Biden could still veto it.
The rally could be a positive sign for cryptocurrencies, including tokens supposedly associated with artificial intelligence (AI) technology. This is because, historically, the inflow of money into the cryptocurrency market and so-called AI coins has been constant partly contingent on the outsized gains of the NVDA and the tech-heavy Nasdaq index.
Second CoingeckoMajor AI coins, such as FET, ICP, RNDR, and GRT, have been trading mixed at the time of writing, having rallied in the run-up to the NVDA announcement.