Matrixport Predicts Rejection of BTC ETF in January
Cryptocurrency financial services company, Matrixport, has released a market research report projecting a possible rejection of spot Bitcoin (BTC) ETF applications by the Securities and Exchange Commission (SEC) in January. The firm believes that final approval for a BTC ETF will be pushed to the second quarter of 2024.
Factors Behind the Projected Rejection
Matrixport cites several reasons for their prediction, including the requirement for more regulatory tightening and the political landscape surrounding crypto regulation. The report highlights SEC Chair Gary Gensler’s lack of enthusiasm for cryptocurrencies and his comments on the need for more compliance measures as potential obstacles to approval.
Impact on Price and Market
If the SEC denies the ETF applications, Matrixport expects a slight price correction in the Bitcoin market. The firm predicts cascading liquidations and a potential -20% decline in Bitcoin prices, falling back to the $36,000-$38,000 range.
Hot Take: Matrixport’s Analysis
Matrixport’s analysis suggests that a spot BTC ETF approval is unlikely in January, with final approval expected in Q2 2024. While this projection may disappoint investors hoping for an ETF, it also highlights the need for further regulatory clarity and compliance measures in the cryptocurrency industry. Ultimately, regulatory approval of a BTC ETF could have significant benefits for the market and potentially drive up prices.
By
By
By