Crypto Industry News:
The Securities and Exchange Commission (SEC) has provided detailed guidelines to stock exchanges regarding the listing and trading of BTC spot ETF funds. There are many indications that the approval of ETFs is getting closer.
The chances of bitcoin spot market funds being approved are increasing. It turns out that the SEC is working with exchanges to provide them with guidance on how to bring Bitcoin ETFs to market.
The SEC's Division of Trading and Markets recently conducted discussions with exchanges advising them to use the cash creation method instead of the non-cash method in the context of ETFs. The securities regulator has also reportedly asked such companies to file amendments to reflect this change in the next few weeks.
ETF units may be created in kind or in cash. When cash is created, authorized participants transfer cash to the ETF issuer in exchange for new ETF units.
Cash creation makes sense because broker-dealers cannot trade bitcoin, so cash creation requires issuers to transact in bitcoin and stops broker-dealers from having to use unregistered subsidiaries or third-party companies. By comparison, Canadian spot ETFs have been using a cash creation model for years
Technical Market Outlook:
The BTC/USD pair bounce had been seen slowly approaching the last week's high seen at the level of $38,028 as the bulls are back in charge of the market. The intraday technical support is seen at $36,840 and the intraday technical resistance is seen at $37,531. The next target for bulls is seen at the level of $40,000, but first the last week high located at $38,028 must be violated. The momentum is again strong and positive on the H4 time frame chart, so the Bitcoin is ready to continue the up trend.
Weekly Pivot Points:
WR3 - $41,363
WR2 - $39,678
WR1 - $38,135
Weekly Pivot - $36,446
WS1 - $34,906
WS2 - $33,218
WS3 - $31,678
Trading Outlook:
The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The next target for bulls is seen at the level of $40,000. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.