Grayscale CEO: Most of 11 Approved Bitcoin ETFs Won’t Survive
The CEO of Grayscale Investments, Michael Sonnenshein, believes that most of the 11 recently approved spot bitcoin exchange-traded funds (ETFs) will not survive. He predicts that only two to three of them will obtain a significant amount of assets under management (AUM), while the others may be pulled from the market.
Sonnenshein argues that Grayscale charges a 1.5% fee for its ETF because it has a track record of success and a diversified investor base. He suggests that other ETFs with lower fees do not have the same level of commitment to the asset class.
Hong Kong Firm Set to Apply for Spot Bitcoin ETF
Venture Smart Financial Holdings, a financial services company based in Hong Kong, plans to apply with the Securities and Futures Commission (SFC) to launch an ETF that directly invests in BTC. The company aims to have $500 million in assets under management by the end of the year.
Hong Kong currently allows futures-based crypto ETFs, but this would be the first spot Bitcoin ETF in the region. The approval process could take several weeks or months.
‘Bitmain is a Hidden Self-mining Giant’ – BlocksBridge Consulting
A report by BlocksBridge Consulting reveals that Bitmain, a leading Bitcoin mining hardware giant, competes against its own customers by selling mining equipment and operating self-owned machines. The report states that Bitmain effectively owns BitFuFu, a company it backs, despite only having a minority share.
The report shows that nearly 65% of BitFuFu’s cloud mining and self-mining revenues in H1 2023 went to Bitmain. This raises concerns about Bitmain’s dominance in the mining industry and its potential conflict of interest.
Hot Take: Grayscale CEO Warns of ETF Survival
The CEO of Grayscale Investments, Michael Sonnenshein, believes that most of the recently approved Bitcoin ETFs will not survive in the long term. He argues that while other ETFs have lower fees, they lack the track record and commitment to the asset class that Grayscale has. In other news, a Hong Kong firm plans to apply for a spot Bitcoin ETF, aiming to have $500 million in assets under management by the end of the year. However, approval could take time. Additionally, a report suggests that Bitmain is a hidden self-mining giant, competing against its own customers by selling mining equipment and operating its own machines. This raises concerns about its dominance in the mining industry.
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