Matrixport predicts that the Bitcoin ETF may be rejected and lead to a 20% price drop
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Matrix, a US crypto investment company, believes that all ETF space Bitcoin applications pending at the Securities and Exchange Commission (SEC) do not meet the criteria set by the commission as of their latest information. Report it.
Under the current Democrat-dominated leadership, the SEC is expected to reject the applications in January. Matrix expects approval of these applications to occur in Q2 2024 instead.
Exchange-traded funds (ETFs) are investment funds that trade on the same stock exchange as stocks. Crypto ETFs track the value of one or more cryptocurrencies. Investing in a crypto ETF can appeal to retail and institutional investors who want to gain exposure to the crypto market while avoiding some of the risks of directly owning crypto assets. For example, a crypto ETF investor does not need to personally manage the security or protection of a crypto wallet.
SEC Chairman Gary Gensler seems to be against the full adoption of crypto by making ETF approvals take too long. The approved ETF would legitimize Bitcoin as an alternative store of value, something Gensler still opposes based on publicly stated compliance concerns. Several Last year times.
At least $14 billion more fiat and interest has flowed into crypto since September 2022, partly due to bets on ETF approvals. While some of the revenue streams correspond to more accessible federal policy, the matrix ties the $10 billion directly to the EFF's valuation.
If the SEC rejects the proposals, the leveraged liquidity could cause Bitcoin's price to drop 20% to the $36,000-$38,000 range as leverage is quickly resolved. Matrix estimates that $5.1 billion in perpetual Bitcoin futures are at risk.
With no confirmation on January 5th, Matrix advises traders to hedge long exposures by using the $40,000 strike or outright Bitcoin shorts to counter the decline.
Despite recent ETF approval odds, Matrix expects Bitcoin to end 2024 at a year-over-year high.
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