Share this article
Matrix, a US crypto investment company, believes that all current ETF spot Bitcoin applications pending in the Securities and Exchange Commission (SEC) do not meet the requirements set by the commission for obtaining ETF approval, according to their latest report.
Given the current Democrat-dominated leadership, they predict that the SEC will likely reject the applications in January. Matrix expects that the approval for these applications may happen instead in Q2 of 2024.
Exchange-traded funds (ETFs) are investment funds traded on stock exchanges, similar to stocks. Crypto ETFs track the prices of one or more cryptocurrencies. Investing in a crypto ETF can appeal to retail and institutional investors looking to gain exposure to the crypto market while avoiding some of the risks of owning crypto assets directly. For example, a crypto ETF investor would not need to personally manage crypto wallet security or custody.
SEC Chair Gary Gensler seemingly opposes fully embracing crypto, making ETF approval a long shot. An approved ETF would legitimize Bitcoin as an alternative store of value, something Gensler still resists based on compliance concerns voiced publicly several times last year.
Since September 2022, at least $14 billion of extra fiat and leverage have entered crypto, partly based on ETF approval bets. While some inflows relate to more accessible Fed policy, Matrix ties $10 billion directly to ETF speculation.
If the SEC denies proposals, cascading liquidations could spark a 20% Bitcoin price plunge toward the $36,000-38,000 range as leveraged longs rapidly unwind. Matrix estimates $5.1 billion of perpetual Bitcoin futures longs remain vulnerable.
With no approvals by January 5th, Matrix recommends traders hedge long exposure using $40,000 strike puts or outright Bitcoin shorts to brace for potential rejection fallout.
Despite near-term bearishness on ETF approval odds, Matrix expects Bitcoin to end 2024 higher year-over-year.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.