Matrixport, a leading crypto financial services firm, released a report today suggesting that the Securities and Exchange Commission (SEC) will likely reject all Bitcoin spot ETFs this January, with final approval potentially delayed until Q2. The report also forecasts a dip in Bitcoin’s price to the range of $36,000 to $38,000, prompting recommendations for investors to consider put options or short positions.
The prediction stands in stark contrast to sentiments expressed by other industry experts, including Bloomberg ETF Analyst Eric Balchunas, who insists that all signs point toward approval. Balchunas took to the X platform to express his confusion regarding Matrixport’s sudden change in stance, questioning whether the analyst had credible sources or was merely speculating. He highlighted that the report contradicts numerous mainstream journalists and internal sources, creating an unexpected divergence of opinions within the industry.
Bitcoin Markets In Flux
The aftermath of Matrixport’s report saw a brief market downturn, with Bitcoin slipping below $41,000 and Ethereum dropping under $2,100. However, the market is now showing signs of recovery.
Jihan Wu, Co-founder of Matrixport, responded to the controversy, clarifying that the analysts operate independently and their views are not influenced by the management. He mentioned that the report was intended for Matrixport’s clients and its widespread dissemination was not part of the original plan. Wu emphasized the firm’s consistent advice to clients about risk management, especially in light of the volatile market conditions tied to ETF expectations.
Despite the uncertainty and market turbulence, Wu remains optimistic about Bitcoin’s long-term prospects. He believes that the SEC’s approval of a Bitcoin spot ETF is inevitable, marking a turning point for fresh investments in the cryptocurrency. Wu asserts that, in the grand scheme, Bitcoin will continue to solidify its position as a store of value and a superior risk-hedging asset, surpassing even the allure of traditional assets like gold.
Nevertheless, the forthcoming weeks will likely witness heightened anticipation and scrutiny as the SEC’s decision on Bitcoin spot ETFs looms. Investors remain on edge, navigating the precarious landscape of market fluctuations and regulatory developments.
Related Reading | Shiba Inu Dev Calls For Urgent Action After Japan’s Quake