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

Matrixport co-founder Jihan Wu took to social media to deal with business considerations relating to the corporate’s current 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 abilities, that are thought of superior to these of the administration staff.

He additional clarified that the report was not influenced in any approach by administration and is predicated on unbiased analysis by the writer.

Wu’s statement comes after business backlash following the discharge of the report because of a scarcity of insider sources, with some claiming the report was a part of a market manipulation scheme.

Distinguished ETF analysts, specifically, declare the report is predicated on pure hypothesis because it conflicts with the knowledge supplied by sources throughout 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 unbiased, well-researched market evaluation.

Backlash

The report — titled “Matrixport Evaluation: SEC to Reject ETF Purposes in January with Ultimate Approval Pushed to Q2 2024” — led to a major 7% worth 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 components influencing Bitcoin’s worth. 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 shortly raised questions concerning the report’s veracity, with many — together with Bloomberg analyst Eric Balchunas — asking the writer Markus Thielen to substantiate his supply.

Thielen responded to Balchunas, stating:

“My report shouldn’t be based mostly on issuer, nor on SEC insider feedback. Clearly that is massively out of consensus. I do assume the SEC will vote it down. And sure, after being the largest bull all yr (predicted 45k by Xmas on Feb 1), I turned bearish at the moment however the arguments had been prepared.”

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

Analysts say in any other case

Balchunas stated that the report goes in opposition to the knowledge given to him and plenty of different journalists and analysts like James Seyffart, who’ve sources throughout the SEC. He added that the declare appears extra like hypothesis as there is no such thing as a concrete proof to help it.

Balchunas additional said 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 will 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 Alternate — concerned in itemizing the upcoming ETFs.

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