Bitcoin and Ethereum in stasis ahead of SEC ETF decision, Nvidia hit record high

Bitcoin (BTC) and Ethereum (ETH) consolidated their recent gains early Thursday morning, lacking a clear directional bias ahead of the U.S. Securities and Exchange Commission's (SEC) decision on VanEck's physical Ethereum ETF application. According to CoinDesk, BTC, the leading cryptocurrency by market capitalization, remained at around $69,500, while Ethereum, the No. 2 cryptocurrency, was steady at around $3,700. However, technical analysis and market positioning show a bullish tone.

Both cryptocurrencies remained above their respective Ichimoku cloud lines, indicating a bullish outlook, a reading that was also echoed by analyst Josh Olszewicz on X. Further evidence from derivatives exchange Deribit shows that options on Bitcoin and Ethereum continue to show a preference for call options, according to data tracked by Amberdata. The bullish positioning may stem from increased expectations that the SEC will approve a spot Ethereum ETF, thereby expanding demand for the cryptocurrency.

 Markus Thielen, founder of 10x Research, said in a memo to clients: "The SEC should approve US-listed ETH ETF today. Hours before the Bitcoin ETF was approved, SEC Chairman Gensler tweeted that crypto investors should consider all potential risks. On this day, a tweet will likely be sent around 9 am ET and will provide more clarity on whether approval is imminent." Thielen also added that Grayscale Ethereum Trust's discount to net asset value has narrowed from 30 percent a week ago to just 8 percent, meaning at least "a 90 percent chance of an ETF approval." If that discount Narrows further today, it could be further evidence that people are buying ETHE to arbitrage approved discounts.

The change comes after reports earlier this week that the SEC is asking spot Ethereum ETF applicants to update and amend their documents, indicating that approval is likely. If the spot Ethereum ETF is approved, it would signal a sharp change in official attitudes toward the crypto industry and a less hostile attitude toward 21st century financial innovation and technology (FIT21) than we feared." Noelle Acheson, author of the Crypto Is Macro Now newsletter, told CoinDesk in reference to the 21st Century Financial Innovation and Technology Act.

On Wednesday, the U.S. House of Representatives passed the bill, which will clearly define whether cryptocurrencies are commodities or securities. Being classified as a security would mean strict SEC regulation. 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 prospects are uncertain and, even if it passes, President Joe Biden could still veto it.

Shares of Nasdaq-listed chipmaker Nvidia (NVDA) hit an all-time high in after-hours trading on Wednesday after the company beat analysts' expectations and reported record first-quarter revenue of $26.04 billion. The rise could be a positive sign for cryptocurrencies including tokens allegedly linked to artificial intelligence (AI) technology. Because historically, inflows into crypto markets and so-called artificial intelligence coins have relied in part on huge gains from NVDA and the tech-heavy Nasdaq index.

According to Coingecko, at the time of writing, top AI coins such as FET, ICP, RNDR, and GRT had a mixed performance in the run-up to the NVDA announcement.