Key Takeaways
- Jihan Wu comments on the unexpected market impact of a Matrixport report about Bitcoin ETFs.
- The report's release coincided with a significant drop in Bitcoin prices, though Wu attributes this to other market dynamics.
- Wu maintains a positive outlook on the eventual SEC approval of Bitcoin Spot ETFs, despite current market uncertainties.
Jihan Wu, the entrepreneur behind Bitdeer and Matrixport, recently commented on a controversy surrounding Matrixport's newest financial report.
It is believed that the report, which suggested a possible rejection of Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC), had an unforeseen widespread impact on the cryptocurrency market.
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Matrixport's analysis indicated a potential rejection by the SEC, citing the Commission's current Democratic majority and Chair Gensler's cautious stance on cryptocurrency.
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.
Following the report's release, Bitcoin's value saw a dramatic downturn, dropping over 10% to $40,800.
However, Wu clarified that Matrixport had not anticipated the report's widespread circulation and market influence. He emphasized that Matrixport's analysts operate independently, forming views without management interference.
He also dismissed claims that the report directly influenced Bitcoin's price, instead pointing to high funding fees in Bitcoin perpetual markets and declines in crypto-related stocks as contributing factors.
Wu remains confident about Bitcoin's long-term prospects despite the market's reaction and uncertainty surrounding the Bitcoin ETF's approval in January 2024. He expressed his belief that the SEC's eventual approval of a Spot ETF is inevitable, which would draw fresh investment into Bitcoin. Wu stated:
Looking at Bitcoin's history and its future prospects, the current volatility and the potential approval uncertainty of a Bitcoin ETF in January 2024 are ultimately of no importance. In my opinion, the approval of a Spot ETF by SEC, which will attract fresh investment into Bitcoin, is inevitable.
Wu's response to the unexpected distribution and impact of the Matrixport report highlights the sensitive interplay between market analytics and cryptocurrency prices. While the immediate market response was marked by volatility, Wu's perspective points towards a resilient outlook for Bitcoin and its potential integration into mainstream financial products like ETFs.
