Bitcoin Spot ETF Proposals to Be Rejected by SEC: Matrixport

"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," Matrixport said

AccessTimeIconJan 3, 2024 at 12:53 p.m. UTC
Updated Mar 8, 2024 at 7:19 p.m. UTC

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."

The widely-anticipated approval of a spot BTC ETF in the U.S. helped drive bitcoin to prices not seen since April 2022 as it closed 2023 up nearly 160% on the year.

Matrixport estimates that of the extra $14 billion of fiat and leverage deployed into crypto since September, $10 billion might be related to ETF expectation.

BTC is currently down nearly 7% on the day at $42.445, with the entirely of that decline coming in the space of a few minutes around 12:00 UTC.

Galaxy Digital Head of Research Alex Thorn took serious issue with the Matrixport report, calling it "bewildering" and "nonsensical." Galaxy, in partnership with Invesco, is among the more than dozen firms who have applications with the SEC for a spot bitcoin ETF.

Updated at 17:00 UTC: Includes reaction from Galaxy's Thorn.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.