Matrixport's Founder Refutes Claims Over Bitcoin ETF Report Impact on BTC's Price Fall
Summary:
Jihan Wu, founder of Bitdeer and Matrixport, has clarified that his firms did not orchestrate the widespread dissemination of a Bitcoin ETF report. He attributes Bitcoin's recent price drop to the high funding fees of the Bitcoin perpetual markets and a recent downturn in crypto-related stocks, rather than the impact of Matrixport's analytics report. He also emphasized that Matrixport's analysts operate independently and express their opinions without any managerial interference. Wu is optimistic about the Bitcoin ETF's inevitable approval by the SEC, which he believes will attract new investments.
Reports of a Bitcoin exchange-traded fund (ETF) were widely circulated, a move not orchestrated by Matrixport, according to its Founder, Jihan Wu, who also established Bitdeer - a Bitcoin mining company. This comes on the heels of Bitcoin's price (BTC) experiencing a sharp drop by over 10%, falling to $40,800 on Jan. 3, before making a comeback. This price shift occurred simultaneously with Matrixport's client report where it was speculated that anticipated Bitcoin spot ETF proposals would face rejection by the U.S. Securities and Exchange Commission this month. The Matrixport analysts commented the SEC leadership, crucial in approving the ETF, is Democratic-led with SEC Chair Gensler not supportive of cryptocurrencies in the U.S. The possibility of him voting in favor of Bitcoin Spot ETFs seems unlikely. When the market exhibited instability, Wu explained that Matrixport analysts operate freely, without any managerial influence or disruption. He dismissed assertions that Matrixport's report was the reason for Bitcoin's price derailment, instead attributing it to the "high funding fees" in the Bitcoin perpetual markets and the recent drop in crypto-related stocks. Wu stated, "The present volatility and potential approval doubt of a Bitcoin ETF in January 2024 are ultimately minor considerations when looking at Bitcoin's history and future potentials." He added, "In my view, the SEC will ultimately approve a Spot ETF, which will invite new investments into Bitcoin." Wu clarified in a tweet that Matrixport's analysts work independently, expressing their viewpoints without intervention from management. They possess superior analytical skills, a primary reason for their employment. He added that he merely skimmed the title of the report.
Additional Information: Bitcoin ETF refusal report was not the cause of 8% BTC price crash — Research Analysis
Published At
1/3/2024 7:59:40 PM
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