Jihan Wu, the founder of Bitdeer, a Bitcoin mining company, and Matrixport, a crypto financial services firm, addressed the unexpected dissemination of a report suggesting a potential denial of a Bitcoin exchange-traded fund (ETF) approval in January. Wu stated that the report's widespread circulation "was not planned by Matrixport" and was beyond their control, surpassing their expectations.
On January 3, Bitcoin experienced a notable price drop of over 10% to $40,800 before recovering. This dip coincided with a report released by Matrixport for its clients, asserting the likelihood of a rejection by the U.S. Securities and Exchange Commission (SEC) for a proposed spot Bitcoin ETF, despite widespread expectations for its approval. According to Matrixport's analysts, the SEC committee's current leadership, primarily comprised of Democrats, and SEC Chairman Gensler's skepticism toward cryptocurrencies make the likelihood of approving a Bitcoin spot ETF slim.
Responding to the market's ongoing volatility, Wu emphasized that Matrixport analysts operate independently, offering their opinions without management's influence. He refuted claims that the report triggered Bitcoin price fluctuations, attributing the market's movements to high funding fees in the Bitcoin perpetual market and the recent decline in cryptocurrency-related stocks.
Regarding the uncertainty surrounding the potential ETF approval in January 2024, Wu expressed confidence, stating that Bitcoin's history and future prospects outweigh current volatility. He believes that eventual SEC approval of a spot ETF is inevitable, expecting it to attract fresh investments into Bitcoin, regardless of short-term fluctuations.
