Bitcoin ETF war could see many issuers never ‘break even’

The cutthroat battle to become the top United States spot Bitcoin exchange-traded fund (ETF) issuer could see many of the listed ETFs today eventually shut their down due to lack of profit.

According to analysts, the ETF fee war may have shut out smaller issuers from joining the race. However, a silver lining is that investors end up as the “biggest winners” due to falling fees.

“Most of the current ETFs launched will never even break even as costs will only work if they get to billions of assets under management, which they won’t,” Hector McNeil, the co-CEO and founder of white-label ETF provider HANetf, told Cointelegraph.

The ten approved Bitcoin ETFs have pulled in over $10 billion in assets under management since launch, but the bulk is held by BlackRock and Fidelity — respectively having around $4 billion and $3.5 billion.

“Four or five will get to breakeven. I even think some that have launched will probably close,” McNeil added. He suspected issuers possibly waiting to launch their own Bitcoin fund will scrap plans to launch.


#news #btc #etf #us

Feb-14-2024 08:45:24 AM