The US Securities and Exchange Commission (SEC) has approved 11 Bitcoin Exchange-Traded Funds (ETFs) in a move celebrated by crypto investors. The simultaneous approval of these ETFs is intended to provide a level playing field for issuers.
Many ETF issuers have offered low fees to attract more investors, with some, such as Fidelity and Bitwise, even waiving their management fees for the first six months. However, the question of who will emerge as the winner among the ETF issuers remains. Michael Novogratz, CEO of Galaxy Digital, discussed this matter on CNBC’s ‘Squawk Box’.
Novogratz explained that not all ETFs are created equal. The execution of an ETF, its liquidity, and hidden fees all play a significant role in its success. He believes that the “tracking error” of his Invesco Galaxy Bitcoin ETF (BTCO), now trading on the Cboe exchange, sets it apart from other ETFs. He stated that his ETF had less than a 1% tracking error, while their largest competitor had 11%.
Novogratz is confident in the success of his ETF, stating, “We’ve done it before. In Germany, Canada, Brazil. We know how to run a cash ETF.” He also believes that there won’t be a singular winner among the ETFs, predicting that two or three will emerge victorious in the long run.
Katherine Dowling, Bitwise AM’s General Counsel and Chief Compliance Officer, also discussed the SEC’s approval of the spot BTC ETFs on Bloomberg News. She expressed confidence in Bitwise’s ability to attract investor interest and agreed with Novogratz that there’s no need for only one winner. She believes that competition within the field is beneficial for investors.
Dowling stated that to survive, issuers must differentiate their product and maintain constant communication with advisors. She also acknowledged the uncertainty surrounding the future of the different BTC ETFs, stating, “We can be explaining how we’re different and then we will see what happens with the entire field.”
At the time of writing, BTC is trading at $45,778.54 on the hourly chart.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇨🇦 🇩🇪 🇧🇷 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Michael Novogratz, Katherine Dowling |
| Companies | Bitwise AM, TradingView.com, Galaxy Digital, US Securities and Exchange Commission, Fidelity, Cboe exchange, Bloomberg News, Bitwise, CNBC, Invesco Galaxy Bitcoin ETF, CI-Group |
| Currencies | Bitcoin |
| Securities | None |
