Matrixport Predicts Delay in Approval of Spot Bitcoin ETFs
The crypto financial services platform Matrixport has released a report suggesting that the U.S. Securities and Exchange Commission (SEC) will likely not approve spot bitcoin exchange-traded funds (ETF) by January 9, as previously anticipated. The report states that “all applications fall short of a critical requirement that must be met before the SEC approves.” Spot Bitcoin ETF applicants are expected to meet the SEC’s demands after January. The SEC has requested amendments to spot ETFs already submitted, including adherence to the “cash only” rule. Critics argue that this requirement is unnecessary and ignores the benefits of an “In-Kind Model.”
SEC Leadership Dominated by Democrats
The Matrixport report explains that the current leadership of the SEC is dominated by Democrats, including SEC Chair Gary Gensler, who is not supportive of crypto. The report suggests that Gensler is unlikely to vote in favor of approving spot bitcoin ETFs, as it would legitimize BTC as a store of value. If the SEC fails to approve the applications, Matrixport predicts a price drop of up to 20% for Bitcoin, with the value falling back to the $36,000/$38,000 range. The report advises investors to hedge against a steep price drop by buying $40,000 strike puts for the end of January or going short Bitcoin through options.
Matrixport’s Motives and Response
After Matrixport’s latest report, questions arose regarding the platform’s consistency and motives. Matrixport co-founder Jihan Wu clarified that the analysts operate independently from management and their opinions are not influenced or interfered with. Wu emphasized that the report was intended for Matrixport’s clients and downplayed the significance of the apparent U-turn in predictions. He expressed a long-term belief in Bitcoin’s success and the eventual approval of spot bitcoin ETFs, which would solidify its status as a store of value and superior to gold.
Hot Take: Matrixport Anticipates Delay in Spot Bitcoin ETF Approvals
The crypto financial services platform Matrixport expects the U.S. Securities and Exchange Commission (SEC) to delay the approval of spot bitcoin exchange-traded funds (ETFs) until after January. The SEC’s leadership, primarily consisting of Democrats, is seen as inclined against approving these ETFs due to concerns about legitimizing bitcoin as a store of value. Matrixport predicts a potential 20% drop in bitcoin’s price if the applications are not approved, with the value falling back to the $36,000/$38,000 range. To mitigate risk, investors are advised to hedge with options and consider shorting bitcoin. Matrixport maintains a long-term optimistic view on bitcoin and the future approval of spot bitcoin ETFs.
By
By
By
By
By