As you probably already know, US Bitcoin (BTC) spot ETFs were approved and launched on exchanges earlier this month. More specifically, eleven ETFs, including Blackrock, ARK and Grayscale. However, it remains to be seen whether all of these eleven ETFs will survive. The CEO of Grayscale doesn't think so.
Crypto Rewind: Bitcoin makes history with the introduction of ETFs
Bitcoin news
Too many Bitcoin ETFs
Michael Sonnenshein, the CEO of the investment fund Grayscale, believes that at some point there will only be two or three Bitcoin ETFs left. He said this on January 18 in an interview with CNBC in Davos, Switzerland, at the World Economic Forum.
“From our perspective, we sometimes question (other issuers') long-term commitment to the asset class. I think ultimately the market will not have the 11 spot products that we currently have.”
Therefore, Sonneshein doubts the commitment of some other ETF issuers. Mati Greenspan from Quantum Economics also believes that eleven issuers of Bitcoin spot ETFs are unrealistic in the long term. He assumes that in the future investors will prefer to manage Bitcoins themselves rather than invest in ETFs.
“Right now, spot ETFs are a good way for some portfolio managers to gain exposure to Bitcoin where they otherwise wouldn’t have it. But eleven ETFs are nonsense. At some point there will be consolidation and they all know it. That’s why the commissions are so low.”
Committee on the War Among Publishers
A real committee battle is actually taking place between the eleven publishers. For example, the trading commissions of the Bitwise ETF are the lowest at 0.20 percent. The remaining commissions, apart from those from Hasdex and Grayscale, are all below 0.50 percent. The grayscale is surprisingly the highest at 1.5 percent.
While most ETFs fight for customers by cutting commissions, Grayscale appears to have little fear of being left out of the competition. And they have good reasons for it. Of all issuers, Grayscale has the most Bitcoins in its cash. However, Grayscale is also the issuer that has sold the most BTC since its launch. 37,497 to be exact.
Get free insight into your crypto profits and losses
Post views: 0