Matrixport Picks Hole In Spot BTC ETF Approval
By Laxmikant Khanvilkar
Bitcoin did a complete reversal in its price after the research firm Matrixport report picked several critical shortcomings, which it believes would hinder the process of legitimizing the grand-old virtual digital assets (VDA), popularly known as cryptocurrency.
As we discuss this report finding….we are just a few hours away from the Securities Exchanges Commission’s (SEC) Chair Gary Gensler probably giving away his decision on several spot bitcoin exchange traded fund (ETF) applications pending with the US markets regulator.
His decision will seal the fate of not just Bitcoin, but many institutional investors and several other projects who have pinned their hope on its passage and generating returns on money invested.
Lot of money is at stake here…..for instance, we have witnessed several institutional investors have lined up investment vehicles in the form of ETFs to attract large institutional investor money waiting to join the bandwagon.
Cryptocurrency investment products have garnered a total investment of $2.2 billion in 2023, according to CoinShares.
The point of reference here is: will this dream run continue in 2024 as well…
If we get into the details of 2023, Bitcoin alone managed to garner over $1.9 billion representing 86% of the total fund in-flows.
Solana’s SOL recorded in flows worth $167 million.
Binance’s BNB bucked the overall trend posting net outflows of $18 million.
Bitcoin funds saw the most significant inflows for any cryptocurrency in 2022, with $388 million, representing 47.5% of the $816 million total.
Satoshi Nakamoto founded Bitcoin price looked all set to breach the $50,000 mark soon. Many analysts maintained a positive outlook as the ETF approval seemed a foregone conclusion.
However, the Matrixport report has undone the good work so far. It expects the SEC to reject all applications to list a spot bitcoin ETF this month. As many as 13 applications including BlackRock, Fidelity, Valkyrie, and others are pending for approval.
The Matrixport report cited that the current five-person voting Commissioners leadership critical for the ETF approval of the SEC is dominated by Democrats. The note highlights, “SEC Chair Gensler is not embracing crypto in the U.S., and it might even be a very long shot to expect that he would vote to approve bitcoin spot ETFs.”
The skepticism over SEC rejection triggered a wave of selling, leading to a liquidation to the extent of 600 million.
Markets turned jittery following the spot bitcoin ETF rejection, sending Bitcoin 8% lower, pushing it near the $40,500 mark.
The price of Bitcoin broke through $45,000 on Jan. 2, for the first time in nearly two years. Lot will depend on the SEC’s decision in the near-term … .investors will be hoping SEC Chair gives his stamp of approval….
You need to login in order to Like
