Jihan Wu stands by Matrixport’s contentious Bitcoin ETF evaluation amid market shakeup

Matrixport co-founder Jihan Wu took to social media to handle trade considerations relating to the corporate’s latest report predicting the rejection of spot Bitcoin ETF purposes by the SEC.

In his assertion, Wu emphasised the independence of Matrixport’s analysts, stating that they function with none affect or interference from administration. He added that the analysts are valued for his or her analytical expertise, that are thought-about superior to these of the administration workforce.

He additional clarified that the report was not influenced in any manner by administration and relies on impartial analysis by the creator.

Wu’s assertion comes after trade backlash following the discharge of the report as a consequence of a scarcity of insider sources, with some claiming the report was a part of a market manipulation scheme.

Outstanding ETF analysts, particularly, declare the report relies on pure hypothesis because it conflicts with the knowledge supplied by sources inside the SEC and the ETF hopefuls.

Wu additionally talked about his restricted involvement with the report, noting that he, like many others, had solely briefly checked out its title. His assertion aimed to make clear the corporate’s stance and reaffirm its dedication to offering impartial, well-researched market evaluation.

Backlash

The report — titled “Matrixport Evaluation: SEC to Reject ETF Functions in January with Ultimate Approval Pushed to Q2 2024” — led to a big 7% value drop in Bitcoin, which fell from above $45,000 to beneath $42,100 in a matter of hours.

Matrixport’s report detailed a number of elements influencing Bitcoin’s value. It projected a rejection of spot Bitcoin ETF purposes within the instant time period, with a possible approval being delayed till the second quarter of 2024.

The rejection declare rapidly raised questions concerning the report’s veracity, with many — together with Bloomberg analyst Eric Balchunas — asking the creator Markus Thielen to substantiate his supply.

Thielen responded to Balchunas, stating:

“My report is just not primarily based on issuer, nor on SEC insider feedback. Clearly that is massively out of consensus. I do suppose the SEC will vote it down. And sure, after being the most important bull all 12 months (predicted 45k by Xmas on Feb 1), I turned bearish in the present day however the arguments have been prepared.”

Regardless of the forecasted regulatory setback, the report maintained a bullish outlook on Bitcoin’s value for 2024, citing historic patterns, the upcoming Bitcoin halving, and macroeconomic situations.

Analysts say in any other case

Balchunas mentioned that the report goes towards the knowledge given to him and plenty of different journalists and analysts like James Seyffart, who’ve sources inside the SEC. He added that the declare appears extra like hypothesis as there isn’t a concrete proof to help it.

Balchunas additional acknowledged that the regulator wouldn’t be going backwards and forwards in assembly with the candidates and exchanges over fixing their filings if the watchdog deliberate to reject the purposes. He added that it could be way more environment friendly for the SEC to stay quiet and easily ask the candidates to resubmit their S-1 filings as a substitute of updating and fixing the 19b-4 kinds.

Fox journalist Eleanor Terret echoed his sentiments and reported that her sources had confirmed the SEC was assembly with all of the exchanges — together with Nasdaq, Cboe, and the New York Inventory Change — concerned in itemizing the upcoming ETFs.

The assembly’s major function is to finalize the 19b-4s submitted by the spot BTC candidates, which is one other optimistic signal.