Matrixport Analysis: SEC to Reject ETF Applications in January with Final Approval Pushed to Q2 2024
Cryptocurrency financial services company, Matrixport has projected a possible rejection of spot Bitcoin (BTC) ETF applications in January with final approval in the second quarter of the year.
In a Jan 3 market research, the firm gave reasons why the Securities and Exchange Commission (SEC) will reject a spot BTC ETF this month, shifting a probable approval date to next quarter and predicting steady asset prices based on other factors.
Matrixport’s latest report released a rare view that the SEC will reject all Bitcoin spot ETFs in January, and final approval may be achieved in the Q2. It also predicts that the price of Bitcoin will fall to 36,000 to 38,000, and recommended that investors buy put options or…
— Wu Blockchain (@WuBlockchain) January 3, 2024
According to the report, despite frequent meetings between staff of the financial regulator and ETF applicants which led to the refilling of applications, edits, and widespread projection of an imminent approval, a critical requirement remains until Q2 2024.
The political sphere remains pivotal to such approval and with Gary Gensler’s recent leaning and comments, more regulatory tightening needs to be done before a spot ETF will be rolled out.
“The current five-person voting Commissioners leadership critical for the ETF approval of the SEC is dominated by Democrats. SEC Chair Gensler is not embracing crypto in the US, and it might even be a very long shot to expect that he would vote to approve Bitcoin Spot ETFs.”
Several Democratic lawmakers have criticized the market for prevalent scams and lack of regulation calling for tougher policies to protect investors and most time just being anti-crypto as described by most commentators.
On his part, Gensler’s approach to the
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