Jihan Wu stands amid market shocks over Matrixport's controversial Bitcoin ETF analysis

Matrixport co-founder Jihan Wu took to social media to address industry concerns over the company's recent report predicting the SEC's rejection of spot Bitcoin ETF applications.

In his statement, Wu emphasized the independence of Matrixport analysts and explained that they operate without influence or interference from management. He added that analysts are valued for their analytical skills, which are superior to those of the management team.

He further clarified that the report was in no way influenced by management and is based on independent research by the author.

Wu's statement came after an industry backlash following the release of the report due to a lack of insider sources, with some claiming the report was part of a market manipulation scheme.

Notably, prominent ETF analysts claim the report is based on pure speculation as it contradicts information provided by sources within the SEC and ETF candidates.

Wu also mentioned his limited involvement in the report, noting that, like many others, he had only briefly looked at the title. The aim of his statement was to clarify the company's stance and reiterate its commitment to providing independent, well-researched market analysis.

Setback

The report, titled “Matrixport Analysis: SEC Rejects ETF Applications in January, Final Approval Delayed to Second Quarter of 2024,” resulted in a significant 7% price drop in Bitcoin, dropping from over $45,000 in a matter of hours -Dollar fell to below $42,100.

Matrixport’s report describes several factors that influence the price of Bitcoin. Spot Bitcoin ETF applications are expected to be rejected in the near term, with potential approval delayed until the second quarter of 2024.

The denial claim quickly cast doubt on the report's veracity, with many – including Bloomberg analyst Eric Balchunas – calling on author Markus Thielen to confirm his source.

Thielen responded to Balchunas by saying:

“My report is not based on issuers or SEC insider commentary. Obviously, this massively contradicts the consensus. I think the SEC will vote against it. And yes, after being the biggest bull all year (predicting 45,000 by Christmas on February 1st), I became pessimistic today, but the arguments were there.”

Despite the predicted regulatory setback, the report maintained an optimistic outlook for Bitcoin price in 2024, citing historical patterns, the upcoming Bitcoin halving and macroeconomic conditions.

Analysts say otherwise

Balchunas said the report contradicts information given to him and many other journalists and analysts, such as James Seyffart, who have sources within the SEC. He added that the claim was more of a speculation as there was no concrete evidence to support it.

Balchunas further explained that if the regulator intends to reject the applications, the regulator will not go back and forth in meetings with the applicants and exchanges about correcting their applications. He added that it would be far more efficient for the SEC to stay quiet and simply ask filers to resubmit their S-1 filings rather than updating and correcting Forms 19b-4.

Fox journalist Eleanor Terret shared his views, reporting that her sources confirmed that the SEC met with all exchanges – including Nasdaq, Cboe and the New York Stock Exchange – involved in listing the upcoming ETFs.

The main purpose of the meeting is to finalize the 19b-4s filed by spot BTC applicants, which is another positive sign.

BTC price and market data

At press time, Bitcoin is ranked #1 in terms of market capitalization, which is also the case for BTC price down 5.11% in the last 24 hours. BTC has a market capitalization of $837.06 billion with a 24-hour trading volume of $46.78 billion. Learn more about BTC ›

BTCUSD chart from TradingView

Market overview

At press time, the global cryptocurrency market is valued at at $1.64 trillion with a 24-hour volume of $115.89 billion. Bitcoin dominance is currently at 51.18%. Find out more >

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