The world’s largest digital asset manager, Grayscale Investment CEO Michael Sonnenshein, anticipates that most of the 11 approved spot Bitcoin exchange-traded funds (ETFs) in the United States won’t succeed, as reported by CNBC.
In an interview at the World Economic Forum, Sonnenshein defended Grayscale’s high 1.5% fees, stating that only two or three spot Bitcoin ETFs are likely to endure, questioning the long-term commitment of others.
Sonnenshein said, “I don’t ultimately think that the marketplace will have ultimately these 11 spot products we find ourselves having.”
Grayscale, holding the largest Bitcoin stake among ETF issuers, has been actively selling Bitcoin, while other issuers have added to their holdings.
Some experts, including Quantum Economics founder Mati Greenspan, foresee potential long-term failure for most ETF issuers, as investors may prefer self-custody or holding assets.
Sonnenshein attributes Grayscale’s higher fees to its 10-year track record and being a crypto specialist, suggesting that lower fees from other ETFs may indicate a lack of commitment or track record in the asset class.
Grayscale CEO’s skepticism about the success of most approved spot Bitcoin ETFs raises questions about their viability, highlighting the potential challenges faced by ETF issuers in a competitive market.