In a recent scratch on paper, crypto investment services provider Matrixport showed their not-so-positive outlook on how the U.S. Securities and Exchange Commission, also known as SEC. Their stance on allowing spot bitcoin exchange-traded funds (ETFs) this month did not look promising. Matrixport spoke of the current Democratic majority in the five-person committee, that is run by SEC Chair Gensler who, according to them, isn’t exactly eager to adopt crypto in the U.S. Gensler being careful, along with the perceived urgency for more compliance, the chance of passing bitcoin spot ETFs is considered a long shot.
Matrixport insisted, on! The likely scenario of an ETF approval could impact the crypto market at large, and that it might lead to major growth. Yet, the firm mentioned, from a political perspective, there’s perhaps little motive to officially recognize Bitcoin as an alternative store of value through the approval of a bitcoin ETF, though spot Bulls are not likely to quit chasing butterflies.
Excitement had before contributed to pushing bitcoin spot prices in the U.S to unseen levels since April 2022. An amazing increase of 160% was witnessed throughout 2023, making it rain candy canes, Matrixport speculated that a big chunk of the additional $14 billion, that was invested in crypto since September is related to the optimism surrounding ETF approval.
Yet, with the positive energy, bitcoin experienced a 12% for the day, at the moment trading at $42,445, with the complete drop unfolding in a few minutes around 12:00 UTC and recovering 6% since, following the worries of a plausible denial of a bitcoin spot ETF.This slump or dump resulted in approximate liquidations of $500 million positions on derivatives exchanges. The Altcoins have seen a much worse crash relative to Bitcoin.
The dreaded deadline for the first Bitcoin ETF approval is set for January 10, 2024? Despite the not-so-optimistic mood around ETF approvals, Matrixport had a positive prediction for Bitcoin in 2024. The possibility of a higher value by the end of the year! This forecasting syncs with the past behavior of crypto in 2023. When it went on to finish the year over 150% higher, than January stages.
