🌋 HANetf Anticipates Closure of Numerous Bitcoin ETFs
posted 14 Feb 2024
HANetf, Europe’s independent ETF provider, predicts the closure of several American Bitcoin ETFs due to profitability challenges. This situation could arise from excessively low fees set by major players, which small or developing investment firms cannot match.
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,says Hector McNeil, the co-CEO and founder of ETF provider HANetf.
McNeil suggests that only about five of the current Bitcoin ETFs will survive in the near term. He points out that cryptocurrency institutional investors stand to gain the most from the fee competition among companies, enabling them to significantly boost their maximum profits.
He also posits that potential newcomers to the Bitcoin ETF market might be deterred from launching their products due to the slim chances of success. Currently, out of ten funds that have amassed $10 billion in assets, nearly 80% of the capital is held by two market leaders—BlackRock and Fidelity ($4 billion and $3.5 billion respectively).
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