{"id":9961,"date":"2024-01-19T17:27:31","date_gmt":"2024-01-19T15:27:31","guid":{"rendered":"https:\/\/forklog.com\/en\/grayscale-ceo-predicts-failure-for-most-bitcoin-etfs\/"},"modified":"2024-01-19T17:27:31","modified_gmt":"2024-01-19T15:27:31","slug":"grayscale-ceo-predicts-failure-for-most-bitcoin-etfs","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/grayscale-ceo-predicts-failure-for-most-bitcoin-etfs\/","title":{"rendered":"Grayscale CEO Predicts Failure for Most Bitcoin ETFs"},"content":{"rendered":"

The majority of the 11 spot bitcoin ETFs approved<\/a> by the U.S. Securities and Exchange Commission (SEC) are likely to fail, according to Grayscale CEO Michael Sonnenshein in a conversation with CNBC<\/a>.<\/p>\n

He believes that only “two or three exchange-traded funds might achieve some critical mass.” <\/p>\n

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“I do not think that ultimately the market will sustain those 11 spot products approved by the SEC,” noted Sonnenshein.<\/p>\n<\/blockquote>\n

Grayscale manages one of the largest bitcoin ETFs \u2014 GBTC<\/span>, which oversees assets worth over $25 billion. In total, spot exchange-traded funds in digital gold have locked up about $27 billion or 632,000 BTC. <\/p>\n

Most issuers initially set a zero fee in the early days of trading the product, later increasing it to 0.2-0.4%. However, Grayscale charges a 1.5% management fee.<\/p>\n

According to Sonnenshein, the company set such a fee because the fund has “a 10-year track record of success” and “a diversified investor base.” <\/p>\n

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“Investors place great value on things like liquidity and the track record of the issuing firm, as well as which actual issuer is behind the fund. Grayscale is a cryptocurrency specialist. And our actions have truly paved the way for the emergence of many of these products,” added the head of the management company. <\/p>\n<\/blockquote>\n

Sonnenshein emphasized that the reason for the low fees of other ETFs is the lack of reputation. <\/p>\n

Nevertheless, GBTC is experiencing daily outflows, losing $1.5 billion over the past week. Analysts linked this situation to profit-taking by investors who purchased the product at a significant discount before its conversion into an ETF.<\/p>\n

In the first four days after launch, the combined trading volume of all spot bitcoin funds reached $11 billion. <\/p>\n","protected":false},"excerpt":{"rendered":"

The majority of the 11 spot bitcoin ETFs approved by the U.S. Securities and Exchange Commission (SEC) are likely to fail, according to Grayscale CEO Michael Sonnenshein in a conversation with CNBC. He believes that only “two or three exchange-traded funds might achieve some critical mass.” “I do not think that ultimately the market will […]<\/p>\n","protected":false},"author":1,"featured_media":9960,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,569,943],"class_list":["post-9961","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-etf","tag-grayscale-investments"],"aioseo_notices":[],"amp_enabled":true,"views":"57","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/9961","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=9961"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/9961\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/9960"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=9961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=9961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=9961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}