Grayscale Investments CEO Michael Sonnenshein said today during the World Economic Forum in Davos that most of the 11 approved spot Bitcoin ETFs will not survive. The Grayscale Bitcoin Trust ETF is the largest Bitcoin ETF in the world, holding over $25 billion worth of Bitcoin.
When the U.S. Securities and Exchange Commission (SEC) approved a slew of spot Bitcoin ETFs earlier this month, much of the focus was on the management fees charged by companies ranging from BlackRock to Fidelity.
Most approved ETFs have fees between 0.2% and 0.4%, while the GrayScale Bitcoin Trust ETF has fees as high as 1.5%. Sonnenshein defended the move, saying the fee was charged for a variety of reasons, including that the firm is the largest Bitcoin fund, has a 10-year track record of success, and has a diverse investor base.
Sonnenshin also said the reason other ETFs charge lower fees is because the products don't have a strong track record and issuers are trying to attract investors with fee incentives.
Sonnenshin also believes that of the 11 approved spot Bitcoin ETFs, only 2-3 are expected to survive, while the others may withdraw from the market. "It is impossible for all of these 11 spot Bitcoin ETFs to survive," he said.