Matrixport Founder Jihan Wu Addresses Spot ETF Report Responsible for Market Crash

Jai Pratap
Last updated: | 1 min read
jihan-wu
Source: X / @JihanWu

Crypto tycoon and Matrixport co-founder Jihan Wu addressed concerns surrounding the company’s report predicting the rejection of spot Bitcoin ETF applications by the U.S. Securities and Exchange Commission (SEC).

Bitcoin’s price dropped as much as 9% on Wednesday as it briefly traded below the $41,000 mark. The flash crash was said to be triggered by Matrixport’s report predicting rejection of spot Bitcoin ETFs.

Jihan Wu Defends Matrixport Report


Wu posted on X that the report was solely based on independent research and was not influenced by the management team. This statement comes in the wake of industry backlash, with some speculating that the report might be part of a market manipulation scheme due to the lack of insider sources.

The report, titled “Matrixport Analysis: SEC to Reject ETF Applications in January with Final Approval Pushed to Q2 2024,” had a significant impact on the market.

Despite the controversy, Matrixport’s report projected a rejection of spot Bitcoin ETF applications in the short term, with a potential approval delay until the second quarter of 2024. This claim raised doubts about the report’s accuracy, prompting industry figures, including Bloomberg analyst Eric Balchunas, to seek clarification from the author, Markus Thielen.

Thielen responded, asserting that his report was not based on issuer or SEC insider comments. He acknowledged the deviation from consensus but maintained his bearish stance on the SEC’s likely rejection.

Analysts Maintain Spot Bitcoin ETF Most Likely to Receive Approval this Month


Prominent analysts like Balchunas and James Seyffart, who have sources within the SEC, disputed the report, labeling it speculative. They argued that the SEC’s actions contradicted the notion of an imminent rejection.

The US SEC has been meeting with all the spot Bitcoin ETF applicants which analysts believe is a positive sign for an approval this month.

Despite the regulatory setback predicted in the report, Matrixport maintained a bullish outlook on Bitcoin for 2024, citing historical patterns, the upcoming Bitcoin halving, and macroeconomic conditions.