Five Things to Know in Crypto This Week: BTC-Spot ETF Market Optimism

Key Insights:

  • Coinbase (COIN) highlights increasing demand from regulators and lawmakers.
  • MicroStrategy (MSTR) increased its BTC holdings in November, eying progress toward a BTC-spot ETF market.
  • The SEC was back in hot water with the US courts as it tried to bring down another crypto platform.

Coinbase Jumped 61.72% in November on Binance Woes

Leading crypto exchange Coinbase (COIN) surged 61.72% in November. A bullish month for the crypto market and investor reaction to the Binance penalty fueled a breakout month. Coinbase shares revisited the $131 handle for the first time since April 2022.

After an impressive November, Coinbase was up 242% to $127.82 year-to-date to November 30, 2023. There was no sell-off on December 1, 2023. Coinbase rallied 7.25%, ending the session at $133.76. Significantly, Coinbase hit a new 2023 high of $134.33 before easing back.

Coinbase Daily Chart 021223

Investors consider Coinbase a beneficiary of any exodus of account holders from Binance.

The gains came despite Coinbase battling the SEC in the courts. In June, the SEC filed charges against Coinbase for allegedly operating as an unregistered securities exchange, broker, and clearing agency, among other charges.

However, an SEC losing streak in the courts and optimism of a favorable outcome to the SEC v Coinbase case contributed to the positive outlook for the platform.

Investors await a January 2024 court hearing, where the SEC and Coinbase will deliver oral arguments about the Coinbase motion to dismiss (MTD). In the MTD, Coinbase argues the SEC has no statutory authority to regulate crypto exchanges.

On Wednesday, November 29, 2023, Coinbase released its annual transparency report. The report highlighted government and law enforcement request trends. Notably, the US made the highest number of requests in 2022 and 2023. From October 1, 2022, to September 30, 2023, requests from the US totaled 5,686 compared with a global total of 13,079.

The increase in requests from the US and other jurisdictions highlighted the increased scrutiny of the crypto market.

MicroStrategy Added 16,130 BTC November 2023

In November 2023, MicroStrategy (MSTR) increased its Bitcoin (BTC) holdings to 174,530. MicroStrategy acquired 16,130 BTC in November at an average price of $36,785.

Investors have responded favorably to the increase in BTC holdings throughout 2023. Year-to-date to November 30, 2023, MSTR surged 242%. However, MSTR had a more subdued November than Coinbase, gaining 17.69%.

Notably, the November acquisition coincided with increased optimism toward the SEC approving BTC-spot ETF applications. Investors anticipate the inflows of institutional money to kickstart the next BTC bull run.

MSTR Daily Chart 021223

SEC Delayed Franklin and Hashdex BTC-Spot ETF Decisions

On Tuesday, November 28, 2023, the SEC postponed the decisions on two BTC-spot ETF applications. The deadlines (second) for Hashdex Bitcoin ETF and Franklin Bitcoin ETF were January 1, 2024. However, the SEC announced the delays one month in advance.

The crypto market responded favorably to the news. BTC gained 3.5% Monday through Friday. Hopes in the SEC planning a batch approval of BTC-spot ETF applications drove buyer demand.

A new approval window will open between January 5, 2024, and January 10, 2024. A first batch could include ETFs from Blackrock (BLK), 21Shares/ARK, and Invesco/Galaxy, amongst others.

Investors speculate the SEC is eying a batch approval to avoid accusations of playing Kingmaker.

BTC Spot ETF Deadlines

Dogecoin (DOGE) Gains 7% as Investors Enter Pre-Moon Launch Mode

Dogecoin (DOGE) enjoyed a positive Monday to Friday, gaining 6.73% to end the Friday session at $0.0840.

DOGE becomes physical, with moon missions on the horizon. On December 24, 2023, Peregrine Mission 1 will launch from Cape Canaveral Space Force Station, destination the Moon. DOGE and other physicals could be in the first Moon landing since NASA’s 1972 Apollo 17 mission.

Dogfather Elon Musk is also eying a DOGE Moon Mission with SpaceX. On Wednesday, November 29, 2023, CEO of Geometric Energy Samuel Reid shared the initial approval of two Moon orbit missions. The first of the two missions is the DOGE-1 to Luna Orbit. Both missions are in 2024.

DOGEUSD Weekly Chart 021223

SEC Faces More Scrutiny in the US Courts

On Friday, Ripple Chief Legal Officer Stuart Alderoty shared the latest from the US courts. Highlighting an increasing trend in the US courts finding fault with SEC actions, Alderoty said,

“Court orders SEC to show why it should not be sanctioned for making false and misleading representations to the Court. SEC v Debt Box, 11/30/23.”

In August 2023, the SEC issued a press release stating it obtained a temporary asset freeze, retraining orders, and other emergency relief against Debt Box. Debt Box allegedly sold unregistered securities.


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