[NEW] Grayscale CEO says most Bitcoin spot ETFs will not survive

In an interview with CNBC, Grayscale CEO Michael Sonnenshein commented on the approved Bitcoin spot ETFs, saying, "Most of them will not survive."

Bitcoin spot ETFs have been trading smoothly since their approval. IBIT (iShares Bitcoin Trust), offered by BlackRock, the world's largest asset management company, is already estimated to have more than $4 billion (approximately 590 billion yen).

However, the price of Bitcoin (BTC) has been weak, falling below $40,000 (approximately 5.9 million yen) on the 23rd. One of the reasons for this is the selling of Grayscale's Bitcoin spot ETF, GBTC (Grayscale Bitcoin Trust).

It is already known that the selling pressure on GBTC is due to the sale by the bankruptcy estate of the cryptocurrency exchange FTX, which went bankrupt in 2022.

The fee war is "because the products have no track record"

In an interview, Sonnenschein said, "Grayscale is a cryptocurrency specialist, and many of these products have really paved the way for cryptocurrency adoption."

Sonnenschein pointed out that the reason other ETFs have low fees is because the products "have no track record." He said this is because issuers are trying to attract investors with fee incentives.

He added, "From our perspective, it raises questions about their long-term commitment to the asset class. Of the 11 Bitcoin spot ETFs, two or three may gain critical mass, but the rest may be pulled from the market. I don't think all 11 Bitcoin spot ETFs are in the same position."

Reference:Interview
Image: Shutterstock

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