August 10, 2023 at 14:28 GMTModified date: August 10, 2023 at 14:28 GMT
August 10, 2023 at 14:28 GMT

SEC could greenlight multiple spot ETFs and trigger rally: Matrixport

The SEC is expected to approve several spot Bitcoin ETFs in quick succession in the coming months, which could trigger a $BTC rally, Matrixport said today.

Bitcoin (BTC). Pic: Unsplash

The US Securities and Exchange Commission (SEC) is expected to approve several spot Bitcoin (BTC) exchange-traded-funds (ETFs) in quick succession in the coming few months. This postulation was suggested by crypto services provider Matrixport in a report that was published today, 10 August.

Its head of research, Markus Thielen, explained the reason behind the same saying that the ETF providers would spend “considerable marketing expenses to draw in retail and institutional capital”.

On top of this stood Grayscale Bitcoin Trust (GBTC), which has managed $43.5billion in assets and generated annual management fees of $870million. The report further stated: “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 regulatory watchdog is yet to decide on the future of Grayscale’s GBTC lawsuit filing and ARK 21Shares Bitcoin ETF refiling, which could both possibly happen next week.

The former criticised the regulators for approving a leveraged Bitcoin-based exchange traded fund (ETF) back in June amid the company’s lawsuit over the SEC’s rejection of its own spot Bitcoin ETF application. The letter, addressed to the US Grayscale called the leveraged ETF “even riskier” than its “traditional” Bitcoin-based futures exchange-traded products.

The first week of September also expects a response from the regulator to seven other Bitcoin ETF filings. According to the report, even one SEC spot ETF approval could have a “material positive impact” on the king coin’s price. By the time the regulator starts responding to ETF applications, investors should have enough “upside exposure”.

In case the SEC takes more time to assess the practicality of the surveillance-sharing agreements, which has often been the case, then the $BTC price may correct initially in mid-September. This would ultimately be the “dip to buy”, said the report.

Back in July this year, Matrixport also predicted that Bitcoin could rally as high as $125,000 by the end of 2024. This forecast was based on its data that indicated a multi-month bull market, resulting in a massive rise in the market value of Bitcoin and other leading cryptocurrencies.