Matrixport, a crypto services provider, reported Thursday that there is a high possibility that several spot Bitcoin (BTC) exchange-traded-funds (ETFs) could be approved in quick succession by the U.S. Securities and Exchange Commission (SEC). This could trigger the next move higher for the world’s largest digital currency. These ETF providers would spend ‘considerable marketing expenses’ to draw in retail and institutional capital, wrote Markus Thielen, head of research.
At its peak, the Grayscale Bitcoin Trust (GBTC) managed $43.5 billion in assets and generated annual management fees of $870 million. The SEC will respond to Grayscale’s GBTC lawsuit filing and ARK 21Shares Bitcoin ETF refiling next week. The regulator is expected to respond to seven other Bitcoin ETF filings during the first week of September.
Matrixport noted that a physical Bitcoin ETF will likely carry a management fee of 0.7-1%, which could still bring in $200m per annum for those ETF providers with marketing expenses front-loaded. The note said that any SEC spot ETF approval could have a material positive impact on the Bitcoin price, and investors should have enough upside exposure on any day that the regulator is scheduled to respond to the ETF applications.
If the SEC needs more time to assess the practicality of the surveillance-sharing agreements, then the Bitcoin price may correct initially in mid-September, and this is the dip to buy, the report added.