Skepticism from Kevin O’Leary on Spot Bitcoin ETFs
During an interview, Kevin O’Leary expressed skepticism about the spot Bitcoin exchange-traded funds (ETFs) approved by the U.S. SEC and criticized their fee structures. He mentioned that fees for holding spot Bitcoin ETFs vary significantly, ranging from 0.21% to as high as 1.5%, which he considers unjustifiable.
Positives from US SEC’s Approval of Spot Bitcoin ETFs
Despite the criticisms, O’Leary acknowledged that the approval of these ETFs could catalyze more regulatory clarity in the U.S. for the crypto and blockchain industry. He believes this development is a step forward in regulation, which could potentially re-energize Congress to focus more on digital payment systems.
US Spot Bitcoin ETF Market Predictions
O’Leary shared his predictions a few of the 11 approved ETFs would survive in the long term, with major players like Fidelity and BlackRock likely to emerge as dominant forces. He emphasized that institutional investors are unlikely to be attracted to spot Bitcoin ETFs due to the associated fees.
Insights from Dan Dolev on Spot Bitcoin ETFs
Dan Dolev, a senior analyst at Mizuho Securities, pointed out that while these ETFs might initially seem beneficial, it presents a significant challenge for Coinbase. He elaborated that as a custodian, Coinbase’s earnings from fees would drop to about five basis points, a stark contrast to the approximately 250 basis points it charges for spot Bitcoin trading.
Hot Take
The spot Bitcoin exchange-traded funds (ETFs) recently approved by the U.S. SEC might have the potential to bring more regulatory clarity to the crypto industry but could lead to various challenges for different entities. Kevin O’Leary expressed skepticism due to the high fees associated with these ETFs, predicting that only a few would succeed in the long term, while Dan Dolev noted that it poses significant challenges for Coinbase, particularly in terms of its trading fees and overall revenue.
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