Matrixport, a crypto financial services firm, recently released a report about the likelihood of a spot Bitcoin ETF receiving approval from the U.S. SEC. This report has sparked debates among investors and market analysts, prompting Matrixport’s founder, Jihan Wu, to address the contents of the report.
The report’s claims have come under scrutiny, with one claim suggesting that Franklin Templeton’s ETF filing in September caused the bull run. However, the report overlooks the filings made by other major players like Invesco and Fidelity, which had a larger influence. The report also fails to acknowledge the impact of a false Cointelegraph tweet and a subsequent gamma squeeze in October.
Another claim in the report is that all ETF applications are lacking a critical requirement, potentially referring to Coinbase’s spot market dominance. However, this overlooks a ruling from the DC Circuit Court of Appeals, which deemed surveillance of futures markets adequate as they closely align with spot prices.
The report also questions the likelihood of SEC approval, even if staff recommendations are positive, based on previous rejections. However, Wu argues that the market has evolved significantly, and current issuers are more respectable, disregarding the report’s pessimism.
Wu separates Matrixport’s management from the report’s conclusions and highlights the independence of the company’s analysts. He attributes recent Bitcoin price volatility to other market factors, such as fluctuating Bitcoin perpetual markets and downturns in crypto-related stocks. Nevertheless, Wu maintains his confidence in the long-term potential of Bitcoin and expects the eventual approval of a spot Bitcoin ETF.