Although Bitcoin ETFs are gaining popularity, not all of them will endure, according to Grayscale Investments CEO Michael Sonnenshein. Sonnenshein believes the majority of spot ETFs will fail even if the SEC has approved 11.
Due to competitive pressure, many issuers have reduced their fees from 0.2% to 0.4%. However, Grayscale, the biggest Bitcoin holder among issuers, agrees to a more expensive 1.5% fee.
Sonnenshein maintains her confidence that only a small number of spot Bitcoin ETFs will pass the test. Grayscale is leading the way as the only issuer dumping Bitcoin rapidly since trade began in the US.
Quantum Economics' Mati Greenspan predicts that most spot ETFs will fail because investors prefer self-custody. He believes that there are now too many spot ETFs, which will inevitably lead to consolidation.
Some, like the CEO of ARK Invest Cathie Wood, keep an alternative viewpoint. She contends that ETFs and self-custody are not mutually exclusive. Her company considers Bitcoin to be a public good. The goal of ARK's Bitcoin ETF, charging a 0.21% fee, is to improve the crypto ecosystem rather than turn a profit.
