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Matrixport's Bitcoin ETF Report Sparks Industry Debate: Jihan Wu Responds Amidst Speculation

Jihan Wu addresses Matrixport's Bitcoin ETF analysis

Jihan Wu, co-founder of Matrixport, has publicly addressed concerns regarding the company’s contentious Bitcoin ETF report. The report, which was among the factors that triggered a sharp 7% decline in Bitcoin prices, was critiqued for its speculative nature and lack of insider backing. Wu emphasized the analytical autonomy of Matrixport’s research team, asserting their independence from managerial influence. 

Wu clarified that the report was crafted based on independent research, distancing himself and the management from its speculative conclusions. Amidst the market uproar, Wu’s defense underlines Matrixport’s commitment to independent financial analysis, despite the report’s divisive reception in the cryptocurrency community.

Impact of Matrixport's report on Bitcoin market

Matrixport's analysis, provocatively titled “SEC to Reject ETF Applications in January with Final Approval Pushed to Q2 2024”, sent ripples through the cryptocurrency market, notably causing Bitcoin's value to plummet from over $45,000 to just below $42,100 in a few hours. The report outlined various factors expected to influence Bitcoin's pricing, including a projected delay in the approval of spot Bitcoin ETF applications until the second quarter of 2024. 

This prediction, steeped in speculation, raised immediate questions about its accuracy, compelling Bloomberg analyst Eric Balchunas and others to seek validation of its sources.

Thielen(author of the report) responded to Balchunas, saying:

“My report is not based on issuer, nor on SEC insider comments. Obviously this is massively out of consensus. I do think the SEC will vote it down. And yes, after being the biggest bull all year (predicted 45k by Xmas on Feb 1), I turned bearish today but the arguments were ready.”

Despite the anticipated regulatory hurdles, the report held a bullish stance on Bitcoin’s future, referencing historical trends, the impending Bitcoin halving event, and broader macroeconomic factors.

Contrasting views from industry experts

The speculative nature of Matrixport's report has been a point of contention among established ETF analysts. Eric Balchunas, a prominent figure in the field, argues that the report contradicts information from reliable SEC sources and ETF applicants. He highlights that the SEC's active engagement with applicants, particularly in refining their filings, does not align with the report's claims of outright rejection. 

Fox journalist Eleanor Terret supports this view, reporting insider confirmations of ongoing SEC meetings with major exchanges like Nasdaq, Cboe, and the New York Stock Exchange. These meetings, aimed at finalizing the 19b-4 forms for the spot BTC ETFs, are seen as a positive indicator, further challenging Matrixport's analysis.