- SEC will approve several spot bitcoin-ETF applications at once, analysts say.
- The first decision on Grayscale Bitcoin Trust (GBTC) could come as early as next week.
- According to experts, the approval of the applications will have a positive impact on the bitcoin exchange rate.
The U.S. Securities and Exchange Commission (SEC) is likely to approve several spot bitcoin-ETFs. This was reported by Coindesk, citing a report by Matrixport.
Analysts have rated the chances of several spot bitcoin-ETFs being approved before the end of the year as “very high”. Such a decision could lead to significant bitcoin appreciation, they said.
“Market participants will spend a significant amount on marketing to attract retail and institutional capital,” said Markus Thielen, head of research at Matrixport.
The company recalled that at its peak, Grayscale Investment Bitcoin Trust’s (GBTC) flagship Grayscale Investment Bitcoin Trust managed $43.5 billion in assets. It generated annual fees of $870 billion.
“The spot bitcoin-ETF will likely have a management fee of 0.7-1%. It will generate about $200 million a year for ETF providers that have marketing costs included,” the report said.
The regulator is expected to make a decision on GBTC as early as next week. In late July, investment fund Grayscale asked the regulator to approve a bitcoin-based spot exchange-traded fund. Experts believe the SEC will respond to seven other filings in early September.
Bloomberg Intelligence analysts Eric Balchunas and James Seyffarth estimated a 65 percent chance of approval for a spot bitcoin ETF. Ark Invest CEO Kathy Wood is optimistic, too. Earlier, she said that “the U.S. regulator is likely to take the path of least resistance.”
Ark Invest and 21Shares have resubmitted paperwork to register a spot bitcoin ETF in April 2023. In July, the U.S. regulator formally launched the application process for the first cryptocurrency-based spot exchange-traded fund registrations.