The Future of Bitcoin Spot ETFs According to Valkyrie’s CIO
The cryptocurrency market is buzzing with the arrival of Bitcoin spot ETFs, and Steven McClurg, Chief Investment Officer at Valkyrie Funds, predicts a shakeup in the industry. McClurg anticipates that operational costs and fierce competition will lead to significant changes among ETF issuers.
Inflows on the Rise
In a chat with Decrypt, McClurg highlighted the tough situation for existing ETF issuers. Among the ten contenders, only seven or eight are expected to endure. High operational costs and rivals slashing fees pose serious challenges for struggling issuers. McClurg suggests maintaining at least $100 million in assets under management to stay competitive in the ETF market.
Warning Bells are Ringing!
Since the Securities and Exchange Commission approved Bitcoin spot ETFs on January 10, the sector has seen a surge in inflows. The first day of trading witnessed an impressive $4.5 billion in transactions. Valkyrie competes with industry giants like BlackRock and Fidelity, yet it has shown commendable performance. BlackRock’s iShares Bitcoin ETF and Fidelity’s Wise Origin Bitcoin Fund crossed the $3 billion mark in assets under management within a month. Valkyrie, with approximately $123.7 million in assets as of February 8, might have a lower volume but is poised to break records.
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