SEC will reject all Bitcoin ETFs in January, says Matrixport

2024-01-03 05:54:20

Matrixport analysts expect the U.S. Securities and Exchange Commission (SEC) to reject all Bitcoin (BTC) spot ETFs in January.

In the latest Matrix report, “Why the SEC will REJECT Bitcoin Spot ETFs again”, analysts predict that all applications for spot Bitcoin ETFs could receive approval in the second quarter of 2024. As a result, the price of BTC will fall to $36,000-$38,000 in January, and recommended that investors buy put options or even sell Bitcoin directly.

Experts also recalled that the current five-member commissioner leadership, which is critical to ETF approval, is dominated by Democrats. Moreover, the head of the regulator, Gary Gensler, does not support cryptocurrency in the U.S., and it may not even be easy to expect him to vote to approve spot Bitcoin ETFs.

“From a political perspective, there is no reason to approve a Bitcoin Spot ETF that would legitimize Bitcoin as an alternative store of value. Since traders started betting on an ETF approval in September 2023, at least $14 billion of extra fiat and leverage has been deployed into crypto.”

Matrixport report

However, despite such prospects, experts still expect further growth in the price of BTC. The two main catalysts for the cost of Bitcoin by the end of the year are the U.S. presidential election and the Bitcoin halving.

Many in the cryptocurrency community are awaiting approval for spot Bitcoin ETFs by Jan. 10. The positive sentiment of traders associated with the possible approval of a spot Bitcoin ETF in the United States contributed to the growth of the rate of the first cryptocurrency. In early January, the price of BTC crossed the $45,000 mark for the first time since April 2022.

However, the price of BTC has today — Jan. 3 — gone down 7.1% in 24 hour trading to $42,481.

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