Grayscale CEO: Most of 11 Approved Bitcoin ETFs Won’t Survive + More Crypto News
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Grayscale Investments CEO Michael Sonnenshein told CNBC that most of the 11 approved spot bitcoin exchange-traded funds (ETFs) will not survive.
More specifically, two to three of the new ETFs “will maybe obtain some kind of critical mass” of assets under management (AUM). The others may be pulled from the market.
He stated,
“I don’t ultimately think that the marketplace will have ultimately these 11 spot products we find ourselves having.”
Connected to this, the CEO discussed Grayscale’s fees compared to its competitors. While many ETF issuers went fee-less for a limited time before raising them to 0.2%-0.4%, Grayscale charges a 1.5% fee.
Sonnenshein argued that other ETFs have lower fees because the products “don’t have a track record.” Also, the issuers are trying to attract investors with fee incentives.
Meanwhile, Grayscale is the largest bitcoin fund, with a 10-year track record of “operating successfully” and a diversified investor base, he said.
Sonnenshein opined that,
“I think from our standpoint, it may at times call into question their long-term commitment to the asset class.”
Grayscale is a crypto specialist that paved the way for many arriving products, the CEO stated. He added that investors are “weighing heavily” factors such as the product’s issuer, liquidity, and track record.
Read more: Bitcoin ETF Essential Facts: Prices, Winners, Losers, Tickers and Fees
Hong Kong financial services company Venture Smart Financial Holdings (VSFG) said it plans to apply with the Securities and Futures Commission (SFC) to start an ETF investing directly in BTC this
