In a recent analysis, Matrixport specialist Markus Thielen predicts that the Securities and Exchange Commission (SEC) is likely to reject all proposals for Bitcoin spot ETFs in January. Thielen argues that despite ongoing discussions and updated S-1 filings, these applications lack a fundamental requirement necessary for SEC approval. Contrary to market consensus, Thielen anticipates the SEC's rejection, citing political dynamics and compliance concerns in a detailed report.
Thielen's perspective stems from the need for more stringent compliance in the crypto industry. While an ETF could contribute to crypto growth in the U.S., SEC Chair Gensler's cautious approach raises doubts about his approval of Bitcoin spot ETFs, according to Thielen. Despite the possibility of approval by Q2 2024, Thielen expects the SEC to reject all proposals this January.
The much-anticipated approval of a spot Bitcoin ETF in the U.S. played a crucial role in driving Bitcoin to price levels not seen since April 2022. As 2023 concluded, Bitcoin experienced an impressive surge of almost 160% for the year. Matrixport estimates that a significant portion of the additional $14 billion invested in crypto since September, around $10 billion, is attributed to the anticipation surrounding the ETF. Bitcoin is currently undergoing a nearly 7% decline, trading at $42,445, following a sudden drop around noon UTC.
In a recent CNBC interview, Gensler expressed concerns about fraud and non-compliance in the crypto field, emphasizing the importance of adherence to securities laws. Galaxy Digital's Head of Research, Alex Thorn, strongly criticized the Matrixport report, describing it as "bewildering" and pointing out several "nonsensical" claims. Thorn highlighted three confusing arguments, including misattributing the bull run's start to Franklin Templeton's September ETF filing, questioning the critical requirement for ETF applications, and speculating on the SEC commissioners' potential rejection despite staff recommendations. Thorn expressed skepticism about Matrixport's predictions, calling them a "real head-scratcher."
Read more of Alex Thorns' tweet here.
bewildering note from Matrixport
— Alex Thorn (@intangiblecoins) January 3, 2024
several of their supporting arguments are nonsensical
3 of their most confusing & questionable claims:
👉🏼 that the bull run was kicked off by Franklin Templeton’s September ETF filing. they write: “There was now more than one big traditional…
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