- Michael Sonnenschein commented on the launch of spot Bitcoin ETFs.
- According to him, no more than three funds will remain on the market, in which a critical mass of assets will be concentrated.
- He also said that Grayscale Investments has no plans to reduce fund management fees.
- It is the highest among other products on the market and is 1.5%.
Grayscale Investments CEO Michael Sonnenshein expressed confidence that not all of the 11 approved spot Bitcoin ETFs will remain on the market. This is reported by CNBC.
“I don’t think that ultimately all 11 spot Bitcoin ETFs that we have now will operate on the market,” the head of the company emphasized.
Sonnenschein believes that in the end there will be no more than three funds in which a critical mass of bitcoins will be concentrated. The rest will consolidate with larger products or leave the market.
In addition, the CEO of Grayscale Investments commented on the high commission that the company charges for fund management. Let us remind you that it is 1.5%, while other issuers of spot Bitcoin ETFs require from 0.2% to 0.4%.
It is the high commission that many experts cite as the key reason for the ongoing outflow of funds from GBTC.
Sonnenschein highlighted several reasons why the company does not want to reduce the commission:
- GBTC remains the leader among spot Bitcoin ETFs in terms of liquidity. The fund controls 25,067 BTC as of January 17, 2024;
- it is the oldest exchange product that invests directly in bitcoins, rather than cryptocurrency-based contracts;
- Grayscale Investments is a crypto specialist.
According to Sonnenschein, investors value “track record” over short-term gains.
It is noteworthy that earlier the head of Ark Invest, Cathie Wood, also predicted that most spot Bitcoin ETFs would leave the market.