Matrixport CEO Jihan Wu Addresses Spot ETF Report Responsible for Crypto Market Crash
Crypto tycoon and co-founder of Matrixport, Jihan Wu, has responded to the backlash surrounding the company’s report that predicted the rejection of spot Bitcoin ETF applications by the U.S. Securities and Exchange Commission (SEC). The report caused a flash crash in the market, with Bitcoin’s price dropping as much as 9% and briefly trading below the $41,000 mark.
Wu took to X to defend the report, stating that it was based on independent research and not influenced by the management team. This response comes as some speculate that the report may be part of a market manipulation scheme due to the lack of insider sources.
Titled “Matrixport Analysis: SEC to Reject ETF Applications in January with Final Approval Pushed to Q2 2024,” the report projected a rejection of spot Bitcoin ETF applications in the short term, with a potential approval delay until the second quarter of 2024. Despite the controversy, Matrixport maintains its bearish stance on the SEC’s likely rejection.
However, prominent analysts and industry figures have disputed the report, labeling it as speculative. They argue that the SEC’s actions, including meetings with spot Bitcoin ETF applicants, contradict the idea of an imminent rejection. These analysts believe that an approval for a spot Bitcoin ETF is more likely to occur this month.
Despite the regulatory setback predicted in the report, Matrixport remains bullish on Bitcoin for 2024. The company cites historical patterns, the upcoming Bitcoin halving, and macroeconomic conditions as reasons for its optimistic outlook.