Michael Sonnenshein, CEO of Grayscale, was interviewed about the high fees of their ETF and stated that the majority of Bitcoin spot ETFs cannot survive.
Grayscale CEO: GBTC, as the issuer of Bitcoin ETF, removes barriers, and a 1.5% fee is reasonable.
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The crowded ETF market: The survival of Grayscale ETF
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
Grayscale Investment CEO Michael Sonnenshein made a bold prediction about the fate of the 11 approved Bitcoin spot ETFs in an interview with CNBC. According to Sonnenshein, the harsh reality is that most of these funds may not survive in the long term.
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In the competitive field of Bitcoin spot ETFs, fees can be as low as 0.2% to 0.4%, but Grayscale charges a 1.5% fee.
Sonnenshein defended this pricing by stating that Grayscale Bitcoin Trust ETF, as the largest fund of its kind, has a unique position with over $25 billion in assets under management and a decade-long successful track record and a diverse investor base, which is the main reason for the high fee.
In 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 make it stand out.
Sonnenshein also mentioned the strategy of new ETFs to attract investors with low fees, which usually start from zero and then slightly increase. He believes that these low fees reflect the lack of validated past performance of these newcomers, implying doubts about their long-term commitment to this asset class.
In his summary of the predictions, the CEO of Grayscale speculates that only a few of the current Bitcoin spot ETFs will successfully manage significant assets.
He believes that the others may eventually be eliminated from the market, resulting in a significant reduction from the current 11 competitors. Sonnenshein’s insights depict a constantly changing market, with Grayscale positioning itself as an experienced participant, betting on quality and experience rather than aggressive fee reductions.
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Further reading
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