Bitwise Withdraws ETF Amendment Filing with Bybit Suspending UK Services

Key Insights:

• Bybit suspends UK services in response to new crypto regulations from the UK Financial Conduct Authority.
• Bitwise withdraws a second ETF amendment request to the SEC.
• Binance filed a motion-to-dismiss, focusing on investment contracts and common enterprises.

The Friday Session Overview

Bybit Suspends UK Services: Bybit announced the suspension of its UK services in response to the UK Financial Conduct Authority’s Financial Promotion Rules for Crypto Assets. However, Bybit is suspending its services rather than completely withdrawing from the UK. According to the announcement,

“Bybit has made a choice to embrace the regulation proactively and pause our services in this market. The suspension will allow the company to focus its efforts and resources (in) being able to best meet the regulations outlined by the UK authorities in the future.”

Bitwise Withdraws BTC and ETH Futures Conversion Application: On Friday, Bitwise submitted a letter to the SEC, officially withdrawing its application for a change in strategy to the Bitwise Bitcoin Strategy Optimum Roll ETF. On August 31, 2023, Bitwise withdrew its ETF application for the Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF.

Binance Motion to Dismiss: On Thursday, Binance Holdings Limited and Changpeng Zhao, in the SEC v Binance case, filed a motion to dismiss (MTD) to the District Court for the District of Columbia. The filing argues,

“The Court should dismiss the SEC’s claims against BHL and Mr. Zhao. Virtually all of the claims should be dismissed on one threshold ground: the SEC fails to plausibly allege that any of the crypto assets at issue is a security.”

The filing also discussed the Howey Test and investment contracts, arguing that the SEC must analyze each transaction and assess whether there is a contract and a contribution of capital to a common enterprise, which then uses that capital to generate and distribute profits.

In August 2023, Coinbase (COIN) filed a motion to dismiss.

Technical Analysis

Bitcoin Analysis

BTC hovered below the 50-day and 200-day EMAs, reaffirming bearish price signals. The 50-day EMA remained converged on the 200-day EMA. A bearish cross of the 50-day EMA through the 200-day EMA would support a BTC slide to sub-$26,000 to test buyer appetite at the trend line.

However, a BTC break above the $26,755 resistance level would give the bulls a run at the EMAs. BTC would need market-friendly SEC v Ripple and Coinbase (COIN) case-related news and BTC-spot ETF updates to drive buyer appetite.

The 14-Daily RSI reading of 49.70 supports a BTC break below the trend line before entering oversold territory.

Ethereum Analysis

ETH remained below the 50-day and 200-day EMAs, affirming bearish price signals. A break above the $1,626 resistance level would bring the 50-day EMA into play. ETH-spot ETF-related news and SEC activity will influence buyer appetite.

However, an ETH decline to $1,550 would allow the bears a run at the $1,502 support level.

The 14-Daily RSI reading of 40.48 supports an ETH move to the $1,502 support level before entering oversold territory.