Ethereum
Bitcoin (BTC), Ether (ETH) in stasis as SEC ETF decision looms, Nvidia (NVDA) hits record high
Bitcoin (BTC) and ether (ETH) consolidated recent gains early Thursday, with no clear directional bias ahead of the U.S. Securities and Exchange Commission’s (SEC) decision on VanEck’s spot ether ETF application, expected later in the day.
BTC, the top cryptocurrency by market value, traded roughly around $69,500, and Ether, the No. 2, held steady at nearly $3,700, according to CoinDesk Data.
Still, technical analysis and market positioning indicate a bullish undertone. Both cryptocurrencies maintained a strong position above their respective values. Ichimoku Cloud Linessuggesting a bullish outlook, an interpretation echoes by analyst Josh Olszewicz on price increases, according to data tracked by Amberdata.
The bullish positioning is likely due to increased expectations that the SEC will approve ether spot ETFs, thereby 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 crypto investors should consider all potential risks before making any investments Today, a tweet could come around 9 a.m. ET and would provide more clearly whether approval would be imminent,” Markus Thielen, founder of 10x Research, said in a note to clients.
Thielen added that the Grayscale Ethereum Trust’s discount to NAV shrank at just 8% compared to 30% a week ago, implying at least “a 90% probability that an ETF will be approved.”
The move follows reports earlier this week that the SEC had requested updates and changes to spot ETF applicants, signaling potential approval.
“If spot ether ETFs are approved, it signals a sea change in the official attitude towards the crypto industry – it also appears that hostility towards FIT21 is not as strong as we feared,” Noelle Acheson, author of the popular Crypto Is Macro Now. newsletter, told CoinDesk, referring to the Financial Innovation and Technology for the 21st Century Act.
On Wednesday, the US House of Representatives pass the law, which will clearly define whether cryptocurrencies are commodities or securities. Categorization as securities would mean strict oversight by the SEC. 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 heads to the Senate, where its future is uncertain. Even if it passes, President Joe Biden could still veto it.
The rally could be a positive signal for cryptocurrencies, including tokens supposedly associated with artificial intelligence (AI) technology. This is because, historically, the inflow of money into the crypto market and into so-called AI coins has been reduced. partly contingent on the outsized gains of the NVDA and the tech-heavy Nasdaq index.
According to CoingeckoMajor AI coins, such as FET, ICP, RNDR, and GRT, were trading mixed at the time of writing, having rallied ahead of the NVDA announcement.