Big News Tomorrow: SEC Decides on Bitcoin Investment Fund

The post Big News Tomorrow: SEC Decides on Bitcoin Investment Fund appeared first on Coinpedia Fintech News

Tomorrow will be a decisive day for crypto as SEC prepares to reveal its decision on Bitcoin exchange-traded funds (ETFs). Analyst James Seyffart hints that news about the ARK 21Shares Bitcoin ETF might drop tomorrow, even though the official deadline is a day later. Seyffart expects the news after markets close and thinks there might be a delay. 

Here’s the insight into the story. 

This is a big deal for big bulls and institutional investors like BlackRock, Bitwise, Van Eck, and Wisdomtree, all hoping for the green light for their Bitcoin ETFs. ARK 21Shares has a head start, as its deadline comes before the others.

However, there is a catch. It is not an easy process to get Bitcoin exchange-traded fund approval. There is a constant fear, that worries about tampering with markets, having enough money, and safeguarding investors could slow down or even stop certain plans.

Looking at the bigger picture, the action is mostly happening in North America, where nearly all the global crypto ETF trading is taking place. ETF analyst Eric Balchunas predicts this North American dominance might grow even more vital, maybe to 99.5%, thanks to new ETFs in the US. 

Expect an A New Bull Rally By September? 

Bitcoin ETF approval is also one of the reasons why BTC is trending. These ETFs could push Bitcoin’s price higher, according to a report from Matrixport.

However, Markus Thielen, head of research at Matrixport, said that ETF providers would allocate significant resources to attract both retail and institutional money. While the report is also about successful marketing efforts, like lower management fees, which could lead to substantial revenue generation. For context, the Grayscale Bitcoin Trust (GBTC) managed a peak of $43.5 billion in assets and earned annual management fees of $870 million.

Furthermore, the regulatory body is anticipated to address seven additional Bitcoin ETF filings in the first week of September. Based on Matrixport’s findings, the management fee for a Bitcoin ETF backed by physical Bitcoin may be between 0.7% and 1%. Despite this cost, considering the large up-front investment in marketing, ETF providers may still receive roughly $200 million yearly.

On the positive side, the report indicates that the approval of a spot ETF by the SEC could have a “material positive impact” on Bitcoin’s price. As the market eagerly anticipates the regulator’s responses to ETF applications, investors are advised to maintain “upside exposure” during these moments.

Matrixport’s analysis also introduced the possibility of a temporary price correction in mid-September if the SEC requires additional time to evaluate surveillance-sharing agreements. This correction could present an attractive opportunity for investors to capitalize on a temporary dip in the market.

In short, the SEC’s Bitcoin spot ETF decision is a big deal. When and how it arrives, and the rise of crypto-related ETFs, could reshape how we think about investing in cryptocurrencies.