Bitcoin Could Surge With SEC's Spot ETF Approvals; Matrixport Urges 'Upside Exposure'

Crypto-services provider Matrixport on Thursday said that the U.S. Securities and Exchange Commission (SEC) might greenlight multiple spot bitcoin exchange-traded funds (ETFs) in the near future.

This move could potentially boost the value of the leading cryptocurrency, Coindesk reported.

Markus Thielen, the head of research at Matrixport, said that these ETF providers are likely to invest heavily in marketing to attract both retail and institutional investors.

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The report highlighted that the Grayscale Bitcoin Trust GBTC once managed assets worth $43.5 billion, raking in $870 million in annual management fees.

The SEC is set to address Grayscale's GBTC lawsuit and the ARK 21Shares Bitcoin BTC/USD ETF reapplication in the coming week, with responses to seven other Bitcoin ETF applications anticipated in early September.

Matrixport's analysis suggests that a physical Bitcoin ETF might charge a management fee between 0.7% to 1%, potentially generating around $200 million annually for these ETF providers, especially with initial marketing costs.

The report further emphasized the potential positive effect of the SEC's spot ETF approvals on Bitcoin's valuation, advising investors to maintain significant "upside exposure" on days when the SEC is slated to address ETF proposals.

However, if the SEC requires additional time to evaluate surveillance-sharing agreements, Bitcoin's value might experience a temporary dip in mid-September, which Matrixport suggests would be an opportune "dip to buy."

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