Crypto investment services provider Matrixport expects the U.S. Securities and Exchange Commission (SEC) to reject all applications to list a spot bitcoin exchange-traded fund (ETF) this month.
"The current five-person voting Commissioners leadership critical for the ETF approval of the SEC is dominated by Democrats," wrote the firm in a note on Wednesday. "SEC Chair Gensler is not embracing crypto in the U.S., and it might even be a very long shot to expect that he would vote to approve bitcoin spot ETFs."
"An ETF would certainly enable crypto overall to take off, and based on Gensler’s comments in December 2023, he still sees this industry in need of more stringent compliance," Matrixport continued. "From a political perspective, there is no reason to approve a bitcoin spot ETF that would legitimize Bitcoin as an alternative store of value."
Multiple times we have seen FUD (Fear, Uncertainty, and Doubt) pumping into the news about the Bitcoin ETFs.
I have mentioned numerous times that the ETFs are NOT likely to be approved until RIGHT BEFORE the Bitcoin halving.
The deadline for approval/rejection is in March, and the halving is currently expected to occur in the middle of April.
I expect another DELAY of the Bitcoin ETFs and more FUD surrounding the markets to occur in the next couple of months.
Ironically, bad news is GOOD NEWS in financial markets.
Because it means the BIG BOYS are trying to shake retail out while accumulating for when the market conditions are all around looking good.
That's when the big boys pump GOOD NEWS on retail while selling their bags.
It's the same playbook every time, folks.