Crypto Financial Services Company Expects SEC to Reject Bitcoin ETFs
Matrixport, a crypto financial services company, anticipates that the US Securities and Exchange Commission (SEC) will reject all spot Bitcoin exchange-traded fund (ETF) applications. This rejection could potentially lead to a downward price correction. The SEC chairman, Gary Gensler, is unlikely to approve the product due to political reasons and his commitment to stricter crypto regulations. Additionally, it would not make sense for the SEC to legitimize Bitcoin as an alternative store of value.
Gary Gensler and SEC Will Block Bitcoin ETFs
Mati Greenspan, Founder and CEO of Quantum Economics, believes that Gensler will not want to disappoint his allies by approving a crypto-related ETF. This sentiment is echoed by market commentator Greekslive on X, who points out weaknesses in crypto-related stocks and recent sell-offs as factors contributing to skepticism around approvals. Options market data also suggests that institutional investors are not very bullish on the ETF market.
Bitcoin Price Predictions After ETF
K33 Research’s Vetle Lund predicts that Bitcoin ETF approvals will trigger a “sell the news” event as short-term market participants look to take profits. CryptoQuant, an analytics firm, predicts that Bitcoin could fall to $32,000 by the end of January due to current high unrealized gains preceding previous price corrections. However, Matrixport still expects Bitcoin to end 2024 higher than its current level.
Hot Take: Potential Impact of SEC Rejection on Bitcoin Price
The potential rejection of Bitcoin ETFs by the SEC could have a significant impact on the price of Bitcoin. If all spot Bitcoin ETF applications are rejected, it may result in a downward price correction as market participants react to this news. While some analysts predict a sell-off in response to the rejection, others believe that Bitcoin will still see positive price growth in the long term. It remains to be seen how the market will react to the SEC’s decision and whether it will have a lasting impact on Bitcoin’s price trajectory.
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