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Jihan Wu, the crypto tycoon and co-founder of Matrixport, recently addressed concerns surrounding the company’s report that predicted the rejection of spot Bitcoin ETF applications by the U.S. Securities and Exchange Commission (SEC).
In response to the flash crash that saw Bitcoin’s price drop as much as 9% and briefly trade below the $41,000 mark, Wu clarified that the report was based on independent research and not influenced by the management team. Some in the industry had speculated that the report might be part of a market manipulation scheme due to the lack of insider sources.
Titled “Matrixport Analysis: SEC to Reject ETF Applications in January with Final Approval Pushed to Q2 2024,” the report had a significant impact on the market. Despite the controversy, it projected a rejection of spot Bitcoin ETF applications in the short term, with a potential approval delay until the second quarter of 2024.
However, prominent analysts with sources within the SEC, such as Eric Balchunas and James Seyffart, disputed the report, labeling it speculative. They pointed to the SEC’s meetings with all spot Bitcoin ETF applicants as a positive sign for potential approval this month.
Amidst the regulatory setbacks predicted in the report, Matrixport maintained a bullish outlook on Bitcoin for 2024, citing historical patterns, the upcoming Bitcoin halving, and macroeconomic conditions. It’s important to approach such reports with a critical mindset and consider a variety of expert perspectives in the crypto industry.
