SEC will not approve spot Bitcoin ETFs in January

Matrixport analysts predict that the SEC will not approve applications for the creation of spot Bitcoin ETFs in January 2024. This could lead to cascading liquidations as crypto companies will not be able to obtain clearance from the agency until their filings meet SEC requirements.

Analytics company Matrixport presented a report according to which the US Securities and Exchange Commission (SEC) will not approve applications for spot Bitcoin ETFs in January 2024.

Experts note that despite previous optimistic forecasts for the launch of investment crypto funds, the situation may change dramatically. According to Matrixport representatives, the SEC will not register spot ETFs in the near future.

The main reason lies in the fact that the agency is not ready to approve applications until they meet the department's key requirements, analysts say.

In addition, experts point to the political factor. In the leadership of the SEC, the main influence remains with the Democrats - traditional skeptics of the cryptocurrency industry, Matrixport points out. This group is led by Gary Gensler, known for his negative statements regarding the topic of digital assets.

All this suggests that the SEC will not rush to approve applications and the process may drag on until the second quarter of 2024, Matrixport said.

If the Commission again delays the approval of applications for spot Bitcoin ETFs, its decision could cause cascading liquidations in the crypto market, experts say. They will lead to the fact that the Bitcoin rate will drop to $36,000.

At the same time, Matrixport representatives maintain an optimistic forecast for 2024. Analysts believe that the upcoming presidential elections and halving will have a positive impact on the price of the first cryptocurrency.

Let us recall that we wrote that the CryptoQuant platform warned about a possible drop in the rate of the first cryptocurrency to $32,000 after the approval of spot Bitcoin ETFs in the United States.