- According to Matrixport analysts, the SEC is unlikely to approve applications for spot Bitcoin ETFs in January 2024.
- Experts believe that the SEC will only approve crypto companies’ applications when they meet all the Commission’s requirements.
- If the SEC refuses to approve spot Bitcoin ETFs in January, it could lead to cascading liquidations.
In a report presented by Matrixport, an analytics company, it is predicted that the US Securities and Exchange Commission (SEC) will not approve applications for spot Bitcoin ETFs in January 2024.
Previously optimistic forecasts for the launch of investment crypto funds may drastically change, as Matrixport representatives suggest that the SEC will not be registering spot ETFs anytime soon.
Analysts highlight the main reason for this to be the agency’s unwillingness to approve applications that do not meet the key requirements set by the SEC.
Furthermore, experts point out the political factor, stating that the SEC is currently led by Democrats who have been traditionally skeptical about the cryptocurrency industry. Gary Gensler, known for his negative statements on digital assets, heads this group, according to Matrixport.
These circumstances suggest that the approval of applications may be delayed until the second quarter of 2024, as the SEC is unlikely to rush into making decisions, Matrixport suggests.
Experts warn that if the Commission further delays the approval of spot Bitcoin ETFs, it could lead to cascading liquidations in the crypto market, resulting in a drop in Bitcoin’s price to $36,000.
Despite these concerns, Matrixport representatives maintain an optimistic outlook for 2024. They believe that the upcoming presidential elections and Bitcoin halving will have a positive impact on the price of the leading cryptocurrency.
It is worth mentioning that the CryptoQuant platform has previously warned about the potential decline of Bitcoin’s price to $32,000 following the approval of spot Bitcoin ETFs in the United States.