Bitcoin ETF Poised for Rejection by SEC? $36K Projected

Matrixport emphasized that the Commission’s push for intensified regulatory standards in the industry makes an approval unlikely.

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  • The Securities and Exchange Commission is yet to decide its position on Bitcoin ETFs.
  • Investor optimism for Bitcoin ETF approval is wavering.
  • Matrixport has revoked its previous forecast that an approval was likely. 

As the cryptocurrency industry awaits the SEC’s verdict on Bitcoin ETFs, optimism surges for potential approval and its anticipated benefits. From a lasting uptick in Bitcoin price to a surge in institutional investment, expectations are heightened among investors who seek to capitalize on market movements.

While most investors and issuers have held a bullish stance regarding the likelihood of approval, others are skeptical, forecasting the commission to pull its ‘anti-crypto’ card again.

SEC to Rule Against Bitcoin ETFs?

In a report on Wednesday, January 3, crypto financial service provider Matrixport offered a contrasting view to the optimistic expectations regarding the SEC’s decision on Bitcoin Exchange Traded-Funds, projecting a likely rejection in January.

The sentiment is rooted in the belief that each Bitcoin ETF proposal still lacks a crucial requirement necessary for approval despite the accelerated engagements and amendment filings by applicants.

SEC Gary Gensler’s stringent approach to the industry was also a focal point of discussion. The report asserted that the commission’s push for intensified regulatory compliance standards in the industry presents an additional challenge, making approval all the more unlikely.

In the event of a denial, the commission’s decision could significantly impact the overall cryptocurrency market.  

Bitcoin Slips to $36,000?

While the anticipation for ETF approval has driven Bitcoin’s price to new highs, Matrixport underscored that the SEC’s rejection could trigger a rapid decline in prices.

The investment firm pointed out that the recent $14 billion influx into BTC, fueled by FOMO among investors and institutions, could see substantial liquidations, potentially slipping Bitcoin from its current $45,000 price point to a range between $36,000 and $38,000.

Matrixport urged investors to adopt a cautious approach and consider protective measures, especially if no approvals are announced by January 5, 2024.

Despite the skepticism surrounding ETF approval, the report asserts that the overall outlook for Bitcoin remains optimistic, with expectations that the asset will surpass the year’s $45,000 starting point by the end of 2024.

Matrixport’s projections of a likely Bitcoin ETF rejection contradict its recent study, where it forecasted that a Bitcoin Spot ETF approval was imminent and BTC would surge beyond $50,000.

On the Flipside

Why This Matters

The recent predictions reiterate the inherently unpredictable nature of the SEC, emphasizing the need for a more balanced perspective on expectations for the SEC’s verdict on Bitcoin ETFs among investors.

Read more on the unlikelihood of SEC’s verdict this week: 
Bitcoin ETF Approval Unlikely This Week, Expert Predicts 

Predictions for a potential approval are rolling in; read more:
89% Chance of Bitcoin ETF by January, Polymarket Users Bet

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.