SEC Expected to Reject Bitcoin Spot ETF Proposals: Matrixport
Crypto investment services provider Matrixport predicts that the U.S. Securities and Exchange Commission (SEC) will deny all applications for a spot bitcoin exchange-traded fund (ETF) this month.
SEC Chair Gensler Unlikely to Approve Bitcoin Spot ETFs
Matrixport believes that the five-person voting Commissioners leadership of the SEC, currently dominated by Democrats, is unlikely to approve bitcoin spot ETFs. The firm argues that SEC Chair Gensler has shown resistance towards embracing cryptocurrency in the U.S. In December 2023, Gensler expressed the need for more stringent compliance in the industry. Matrixport states that there is no political reason to approve a bitcoin spot ETF that would legitimize Bitcoin as an alternative store of value.
The approval of a spot bitcoin ETF in the U.S. has been highly anticipated and helped drive bitcoin prices to their highest levels since April 2022. The cryptocurrency ended 2023 with a nearly 160% increase in value. Matrixport estimates that around $10 billion of the $14 billion invested in crypto since September might be related to ETF expectations.
BTC is currently experiencing a decline of nearly 7% for the day, trading at $42,445. This decline occurred within a few minutes around 12:00 UTC.
Galaxy Digital Challenges Matrixport Report
Galaxy Digital's Head of Research, Alex Thorn, strongly disagrees with the Matrixport report, describing it as "bewildering" and "nonsensical." Thorn's firm, Galaxy, in partnership with Invesco, is one of the many companies that have submitted applications for a spot bitcoin ETF with the SEC.
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