Valkyrie Funds Bitcoin ETF

The Chief Investment Officer of Valkyrie Funds, Stephen McClurg, predicts the closure of several Bitcoin ETFs.

Stephen McClurg, the Chief Investment Officer of Valkyrie Funds, anticipates the closure of several Bitcoin ETFs. According to him, the number of active Bitcoin ETFs will decrease by the end of 2024 as the number of creators of these derivatives decreases from 10 to 7-8. This is attributed to high asset management expenses and low profits caused by competition, which forces issuers to reduce fees.

Bloomberg analyst James Seifert notes that the least popular among Bitcoin ETFs are Franklin Bitcoin ETF (EZBC) and WinsomTree Bitcoin Fund (BTCW). As of February 8, these funds had $72.5 million and $18.1 million invested, respectively. Therefore, according to the expert, these funds may be closed within the year.

Among Bitcoin ETFs, Grayscale Bitcoin Trust BTC (GBTC) leads with assets totaling $21.2 billion. In the second and third positions are iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (IBIT), attracting over $3 billion. As of January 11, investments in all Bitcoin ETFs amounted to $30.5 billion, and the total trading volume of their shares reached $34 billion.

"If you haven't attracted capital of $100 million yet, it's time to abandon this venture [supporting the operation of Bitcoin ETFs]," McClurg stated.

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