MatrixPort: "US SEC Will Decline to Approve All Bitcoin Spot ETFs in January"

"The U.S. Securities and Exchange Commission (SEC) is expected to deny approval to launch all Bitcoin spot ETFs for which applications have been filed in January," cryptocurrency service provider MatrixPort reported on Wednesday. "ETF issuers have had frequent meetings with the SEC recently and have updated their filings to meet the SEC's requirements. However, we believe that not all Bitcoin spot ETF products have met the SEC's requirements. These requirements are likely to be met in the second quarter. Currently, the SEC has five voting commissioners. Their authority to approve spot ETFs is absolute. However, the SEC is currently controlled by Democrats, and Commissioner Gary Gensler is skeptical of cryptocurrencies. That said, our original prediction that BTC will rise to $50,000 if the ETF is approved in January remains unchanged. Conversely, if the SEC denies approval in January, most of the $5.1 billion in long Bitcoin perpetual futures positions are expected to be liquidated, which could cause BTC to drop 20% in an instant and retrace to the $36,000-$38,000 range. Therefore, if we don't hear about the ETF approval by the 5th, we recommend hedging long exposure. Then, consider buying a put option with a strike price of $40,000 expiring in late January or going short." "Even if the SEC doesn't approve the ETF, we still expect BTC to end the year higher than at the beginning of the year due to halving cycle effects," added Matrixport.