Matrixport Analysts Predict SEC Rejection of Bitcoin Spot ETFs
According to analysts at Matrixport, the U.S. Securities and Exchange Commission (SEC) is expected to reject all Bitcoin spot ETFs in January. In their report titled “Why the SEC will REJECT Bitcoin Spot ETFs again,” analysts anticipate that spot Bitcoin ETF applications could potentially be approved in the second quarter of 2024. As a result, BTC’s price is predicted to decline to $36,000-$38,000 in January. The report advises investors to consider purchasing put options or selling Bitcoin directly.
Potential Political Hurdles for ETF Approval
The report highlights that the current leadership of the five-member commissioner, crucial for ETF approval, is predominantly Democratic. Additionally, Gary Gensler, the head of the SEC, is not a proponent of cryptocurrency in the United States. This suggests that it may be challenging to secure his vote for approving spot Bitcoin ETFs.
“From a political perspective, there is no reason to approve a Bitcoin Spot ETF that would legitimize Bitcoin as an alternative store of value. Since traders started betting on an ETF approval in September 2023, at least $14 billion of extra fiat and leverage has been deployed into crypto.”
Matrixport report
BTC Price Growth Expected Despite Rejection
Despite the potential rejection of spot Bitcoin ETFs, experts still anticipate further growth in BTC’s price. The U.S. presidential election and the upcoming Bitcoin halving are identified as key catalysts for price appreciation by year-end.
Awaited Approval for Spot Bitcoin ETFs
The cryptocurrency community eagerly awaits the approval of spot Bitcoin ETFs by January 10th. The positive sentiment surrounding this possibility has contributed to the recent price surge of BTC. In early January, BTC surpassed the $45,000 mark for the first time since April 2022. However, as of January 3rd, BTC’s price has declined by 7.1% in 24 hours, currently at $42,481.
Hot Take: Uncertainty Surrounding Bitcoin Spot ETFs
While the anticipation for spot Bitcoin ETF approval remains high, Matrixport analysts predict a rejection by the SEC. This expectation is attributed to political factors and the stance of key regulators. Despite this potential setback, experts still anticipate growth in BTC’s price due to other catalysts such as the U.S. presidential election and the Bitcoin halving. The cryptocurrency community eagerly awaits the decision on spot Bitcoin ETFs and its potential impact on BTC’s value.
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