GrayScale CEO: The vast majority of Bitcoin spot ETFs are unlikely to survive.
Grayscale CEO Michael Sonnenshein responded to the high fees of its ETF and stated that the majority of Bitcoin spot ETFs cannot survive.
Grayscale CEO: GBTC is the Bitcoin ETF issuer’s obstacle, 1.5% fee is reasonable.
Table of Contents:
Toggle
The crowded ETF market: Grayscale ETF’s survival strategy
Grayscale defends its fees
Advantages of Grayscale: Combining experience and expertise
Fee war: Grayscale’s strategy against newcomers
Predicting the future: Reduction in the number of Bitcoin ETFs
During an interview with CNBC, Grayscale Investment CEO Michael Sonnenshein made bold predictions regarding the fate of the 11 approved Bitcoin spot ETFs. According to Sonnenshein, the harsh reality is that most of these funds may not survive in the long term.
In the fiercely competitive Bitcoin spot ETF industry, fees can be as low as 0.2% to 0.4%, but Grayscale charges a fee of 1.5%.
Sonnenshein defended this pricing, stating that the unique position of the Grayscale Bitcoin Trust ETF as the largest fund of its kind, with assets under management exceeding $25 billion, and its ten-year track record and diverse investor base, are the main reasons for the high fee.
During a conversation at the World Economic Forum in Davos, Sonnenshein emphasized the advantages of Grayscale. He pointed out that liquidity, a good track record, and the reputation of the issuer play a crucial role in investor decision-making. Sonnenshein believes that Grayscale’s expertise in the crypto field and its pioneering position in product development will set it apart.
Sonnenshein also mentioned the strategy of attracting investors with low fees by new ETFs, which typically start at zero and then slightly increase. He believes that these low fees reflect the lack of validated past experiences of these newcomers and imply doubts about their long-term commitment to this asset class.
In his concluding prediction, Grayscale’s CEO speculates that only a few of the current Bitcoin spot ETFs will successfully manage significant assets. He believes that the rest will eventually be eliminated from the market, leading to a significant reduction from the current 11 competitors. Sonnenshein’s insights depict a constantly changing market, with Grayscale positioning itself as an experienced participant, placing bets on quality and experience rather than aggressively cutting fees.
ETF
Grayscale
Further reading:
Bitcoin spot ETF | GBTC daily outflows of 10,000 BTC, with 500,000 BTC still to be sold?
In just five days, Bitcoin surpasses silver to become the second-largest ETF in the United States, second only to gold.
