Jihan Wu, the founder of Bitcoin (BTC) mining company Bitdeer and crypto financial services firm Matrixport, has distanced his company from a report.
Jihan Wu, the founder of Bitcoin (BTC) mining company Bitdeer and crypto financial services firm Matrixport, has distanced his company from a report claiming that Bitcoin exchange-traded funds (ETFs) may not be approved in January, emphasizing that its dissemination was "not planned by Matrixport and is beyond our control."
On January 3, the price of Bitcoin fell in a matter of minutes by more than 10% to $40,800 before recovering slightly. This coincided with the release of Matrixport's report for its clients, which stated that spot Bitcoin ETF proposals, widely believed to be on track for regulatory approval, would be rejected by the United States Securities and Exchange Commission (SEC) in January 2024.
The report cited the current composition of the SEC's five-person voting Commissioners, dominated by Democrats, and SEC Chair Gary Gensler's perceived skepticism towards crypto in the U.S.
In response to the ongoing market volatility, Wu stated that Matrixport analysts "operate independently” and are “employed for their superior analytical skills compared to mine and other management team.” He also emphasized that the report was meant for clients, saying that “this recent report was prepared for Matrixport's clients. However, its wide spread by the media was not planned by Matrixport and is beyond our control.”
Wu also said that Bitcoin’s price action was not due to the report, instead explaining that the “volatility is evident in the perpetual market's high funding fees and the recent decline in crypto-related stocks in the stock market over the past two trading days before today.”
Finally, Wu wrote that the “current volatility and the potential approval uncertainty” of the spot Bitcoin ETF is not crucial, as the eventual approval of a spot ETF “is inevitable.”
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