Crypto financial services company Matrixport expects the Democrat-heavy US Securities and Exchange Commission (SEC) panel to reject all spot Bitcoin exchange-traded fund (ETF) applications, which may result in a downward price correction.
The SEC chairman, Gary Gensler, is unlikely to allow the product, and approval makes no sense from a political standpoint. Gensler has remained steadfast in enforcing stricter crypto rules. It would also make no sense for the SEC to legitimize Bitcoin as an alternative store of value.
Gary Gensler and SEC Will Block Bitcoin ETFs
Mati Greenspan, the Founder and CEO of Quantum Economics, told BeInCrypto earlier this month he thinks Gensler is unlikely to want to disappoint his allies by approving an ETF.
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“I doubt very much that Gary Gensler is going to approve any kind of crypto-related ETF. I think if its within his power, he’s going to do anything he can to delay the crypto innovation in favor of the big bankers that is beholden to,” Said Mati Greenspan.
Their sentiments were echoed by a market commentator, Greekslive on X, who thinks that weaknesses in crypto-related stocks and recent sell-offs will have reinforced skepticism around approvals. Options market data suggests that institutional investors are “not very bullish on the ETF market,” they observed.
K33 Research’s Vetle Lund predicts that Bitcoin ETF approvals will be a “sell the news” event.
“A sell-the-news event could become a self-fulfilling prophecy as a significant share of short-term market participants has eyeballed the event as an area for profit taking, Said Lund.
Bitcoin Price Predictions After ETF
Renowned analytics firm CryptoQuant predicts that current high unrealized gains that preceded previous price corrections mean Bitcoin could fall to $32,000 by the end of January. Despite having a bearish thesis for the ETF approvals, Matrixport predicts Bitcoin will end 2024 higher than this month.
Bitcoin ended last year over 150% higher than its January 2023 level. The deadline for the decision on the first Bitcoin ETF approval is on January 10, 2024.
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