Jihan Wu, the mind behind Bitcoin mining company Bitdeer and financial services firm Matrixport, made it clear that his company didn’t plan or control the spread of a report suggesting Bitcoin exchange-traded funds (ETFs) might face rejection in January. He stressed that this report’s circulation wasn’t orchestrated by Matrixport.
When Bitcoin’s value took a sudden 10% dip to $40,800 on January 3, it aligned with Matrixport releasing a report for its clients. The report predicted that proposals for spot Bitcoin ETFs, usually expected for regulatory approval, would likely get turned down by the United States Securities and Exchange Commission (SEC) this January. This conclusion was drawn from the SEC’s current Commissioners, mainly Democrats, and Chair Gary Gensler’s perceived cautious stance on crypto in the U.S.
To address the market frenzy, Wu clarified that the analysts at Matrixport work independently and are hired for their top-notch analytical skills. He emphasized that the report was intended solely for clients and wasn’t meant to spread widely through the media as it did.
Wu pointed out that Bitcoin’s price movement wasn’t directly caused by the report. Instead, he attributed the volatility to the high funding fees in the perpetual market and the recent decline in crypto-related stocks in the stock market over the previous two trading days.
Regarding the uncertainty around the spot Bitcoin ETF’s potential approval, Wu remained unfazed, believing its eventual approval is inevitable despite the current market fluctuations and hesitancy.