The SEC’s Response to Bitcoin Spot ETFs: Matrixport’s Forecast
Matrixport, the self-proclained fortune-teller of the crypto, predicts a chilly reception from the U.S. Securities and Exchange Commission (SEC) towards all spot Bitcoin exchange-traded fund (ETF) applications this month. With a Democratic stronghold in the SEC, especially under Chair Gary Gensler, the prospect of embracing the crypto seems as likely as finding a needle in a haystack, from their point of view.
The much-anticipated approval of a spot BTC ETF, the catalyst that drove bitcoin to stellar heights in 2023, now encounters a barrier with the face of Jihan Wu, Matrixport co-founder.
Matrixport straightforwardly states that expecting Gensler to approve bitcoin spot ETFs is akin to banking on a snowball’s survival in a volcano. The estimated $10 billion in ETF-related anticipation, out of the additional $14 billion invested in crypto since September, adds a layer of disappointment to the potential setback.
Jihan Wu, Who are You, Man?
Let’s face things straight. Who is Jihan Wu, and why we shouldn’t respect and trust him?
Wu’s academic background, with a dual degree in economics and psychology from Peking University, adds a layer to his role. Is he the master-manipulator or just a shrink with a economics degree?
Jihan Wu’s foray into the world of cryptocurrencies began during the early days of Bitcoin. Recognizing the immense potential of this technology, he co-founded Bitmain in 2013, aiming to provide miners with powerful and efficient hardware. Bitmain quickly gained prominence as a market leader in the development of Application-Specific Integrated Circuit (ASIC) miners, which are essential for Bitcoin mining.
In February 2019, he co-founded Matrixport, a crypto financial services startup, possibly an attempt to script a sequel to Bitmain.
All of Jihan Wu’s Wrongs List
- Covert ASICBoost: Bitmain, under Jihan Wu’s leadership, was accused of utilizing covert ASICBoost, a patented technology that provided them with a competitive advantage in Bitcoin mining. This raised concerns about unfair practices and centralization within the mining industry.
- Opposition to Segregated Witness (SegWit): Bitmain and Jihan Wu were known for their strong opposition to the implementation of Segregated Witness (SegWit), a protocol upgrade for Bitcoin. Critics argued that Bitmain’s resistance was rooted in a desire to protect their covert ASICBoost advantage.
- Promotion of Bitcoin Cash (BCH): Jihan Wu actively supported Bitcoin Cash, a fork of Bitcoin that aimed to increase the block size. This was a very shitty attempt to divert attention from the ongoing scaling debates and create a blockchain under Bitmain’s influence.
- Allegations of Centralization: Wu’s influence and control over Bitmain, a significant player in the mining industry, led to concerns about centralization. Critics argued that Bitmain’s dominance threatened the decentralized nature of cryptocurrencies, particularly Bitcoin.
- Questionable Business Practices: Bitmain faced criticism for various business practices, including selling used miners as “new,” resulting in delayed shipments and reduced miner lifespans. These practices led to frustration among customers and damaged Bitmain’s reputation.
- Financial Losses and Internal Conflicts: Bitmain experienced significant financial losses, partly due to its involvement with Bitcoin Cash and the volatile cryptocurrency market. Internal conflicts within the company, including a power struggle between Jihan Wu and co-founder Micree Zhan, further contributed to the controversies surrounding Bitmain.
Conclusion
Jihan Wu’s journey in the crypto world has been marked by both admiration (not from us, tho) and controversy. While some view Wu as a visionary entrepreneur who championed larger block sizes for the sake of scalability, others see his actions as attempts to consolidate power and control.
Regardless of one’s perspective, Jihan Wu’s influence on the crypto landscape cannot be overlooked (but can and will be judged), and his controversial decisions continue to shape discussions surrounding the future of digital currencies.
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