Lately, there has been growing interest in Bitcoin exchange-traded funds (ETFs). Several large asset management companies, including BlackRock and Fidelity, have recently filed applications for Bitcoin ETFs. Furthermore, Grayscale, a significant participant in the cryptocurrency investment sector, has advocated for the Securities and Exchange Commission (SEC) to review and potentially approve all the proposed spot Bitcoin ETFs concurrently.
However, it remained uncertain as to when and whether these ETFs would be approved. According to one of the recent reports by Matrixport, a crypto service provider, the US SEC is most likely to approve several Bitcoin ETFs.
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Matrixport says it could trigger a Bitcoin rally
The Matrixport report stated that the simultaneous approval of these ETFs by the SEC could trigger a BTC rally. According to Markus Thielen, head of research, ETF providers are prepared to allocate significant resources to attract both retail and institutional capital through substantial marketing efforts.
The report 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.”
Matrixport Report
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Matrixport highlighted that, during its peak period, the Grayscale Bitcoin Trust (GBTC) managed assets totaling $43.5 billion. As a result, annual management fees amounted to $870 million. The SEC is expected to provide a response to the ETF filings by Grayscale, ARK, and seven others.