The ETF providers would spend "considerable marketing expenses to draw in retail and institutional capital," Markus Thielen, head of research, wrote.

Matrixport noted that at its peak, the Grayscale Bitcoin Trust (GBTC) managed $43.5 billion in assets and generated annual management fees of $870 million.

The SEC will respond to Grayscale's GBTC lawsuit filing and ARK 21Shares bitcoin ETF refiling, next week. The regulator is expected to respond to seven other bitcoin ETF filings during the first week of September.