Matrixport Predicted The Spot Bitcoin ETF Rejection By SEC
On January 3, 2023, Wednesday, news from the Matrixport office swayed the crypto universe, and the major influence of the same is observed on BTC prices. The news was related to the upcoming major event, spot ETF proposals in January. As per the financial services firm, the SEC will likely reject the filings of the spot Bitcoin ETF.
Analysts Thought On Spot Bitcoin ETF
A single statement from cryptocurrency financial services company Matrixport analyst Markus Thielen manipulated the price of the oldest and largest cryptocurrency, Bitcoin.
The year 2024 seems a good start for Bitcoin, but the performance didn’t last for long. In a single day, the king of the crypto world shifted from $45K to $41K, a decline of over 5.60%.
What could be the main reason behind the decline? The statement of Matrixport on the spot Bitcoin ETF made all the change.
According to Matrixport analyst Markus Thielen, the SEC is expected to reject all the spot Bitcoin ETFs in January. Also, the final approval could come in the second quarter of 2024.
Once, thumbs up for spot Bitcoin ETFs approval and BTC price hitting $50K, suddenly changed his mind.
Requirements specified by the SEC are not fulfilled, which could be one of the main reasons behind the rejection. Also, Gary Gensler, the SEC chairman is looking for stricter rules in the crypto industry, mainly in the US.
These deficiencies in the crypto industry may force the SEC to postpone the ETF approval to the second quarter of 2024.
Moreover, the analysts suggested investors take a short position, expecting the BTC price decline to from 36K to 38K.
“If no approval is received from the SEC by Friday, January 5, 2024, we, as Matrixport, recommend that investors buy put options and make direct short sales”, said the Matrixport team.
However, the SEC hasn’t made any official announcement regarding the approval or rejection of multiple spot BTC ETF.
Impact of the Matrixport Comment on the BTC Price
The news of spot Bitcoin ETF rejection fluctuated the BTC price in a day. BTC price declined by over 5.60% to $41K before recovering. The crypto community was expecting BTC to perform well, but the statement made many of the BTC holders take a back step and take a short position.
However, Jihan Wu, the founder of Bitdeer and Matrixport said that the comment was not planned and beyond the control.
“The analysts work independently and just express their opinions using their superior analytical skills”, he added.
Furthermore, Matrixport anticipates a BTC price rise even if the SEC doesn’t pass the spot ETF. Other major events like Bitcoin halving and the US election years have already boosted the digital asset’s value.
Disclaimer
The information contained in this article is intended for informational and educational purposes only. It should not be construed as financial, investment, or trading advice. Investing and trading involve risk, and you should carefully consider your own circumstances and risk tolerance before making any investment decisions.
