The Doubts Raised by a Senior ETF Analyst
A senior ETF analyst has expressed skepticism regarding the accuracy of a recent report published by Matrixport, a crypto investment services provider. The report suggests that the SEC may reject all spot Bitcoin ETF applications in January.
“People tagging me like crazy on this ‘rejection’ report. We have heard nothing to indicate anything but approval but I want to give the guy the benefit of the doubt so I’m asking if he has any sources or if he is just speculating,” said the analyst.
In response to the analyst’s inquiries, the head of research at Matrixport clarified that the report was not based on issuer or SEC insider comments. However, he did admit to turning bearish on the matter. “Obviously this is massively out of consensus,” he added. “I do think the SEC will vote it down.”
The Turbulence in the Crypto Market
The release of Matrixport’s analysis coincided with a significant dip in Bitcoin’s value, which dropped by 8%. According to the report, while the ETF applicants have had frequent meetings with SEC staff and even refiled their applications, they fall short of meeting a critical requirement necessary for approval. The report posits that this requirement may be fulfilled by Q2 2024, but anticipates all proposals to be rejected in January.
“While we have seen frequent meetings between the ETF applicants and staff from the SEC, which resulted in the applicants refiling their applications, we believe all applications fall short of a critical requirement that must be met before the SEC approves,” states the Matrixport analysis.
Matrixport co-founder, Jihan Wu, responded to the report’s dissemination by emphasizing that it was not planned by the company and was beyond their control. He asserted that the company’s analysts operate independently and that their opinions are not influenced or interfered with by management. Wu personally believes that the approval of a Spot ETF by the SEC, which will attract fresh investment into Bitcoin, is inevitable.
Controversy and Accusations
The release of the report has caused uproar within the crypto community, with some alleging market manipulation by Matrixport. Users on X, a forum platform, called for an investigation into the company’s actions. One user stated, “Matrixport should be investigated for market manipulation regarding the BTC ETF denial ‘opinion’.” Meanwhile, Bitcoin’s value remained 5% down at the time of this article’s publication.
“If you don’t think this is market manipulation, you haven’t been here long enough,” commented another user. “Sorry to everyone that sold.”
As the crypto market continues to evolve and navigate regulatory hurdles, the impact of reports and analyses on investor sentiment remains a topic of intense debate and scrutiny.
Image Source: Adobe Stock
