The largest Bitcoin (BTC) asset management product is Grayscale’s $19 billion BTC Trust (GBTC), but the world’s largest asset management company BlackRock The filing of a Bitcoin ETF in the US could threaten its dominance, investment firm Bernstein said in a June 26 research report.
Grayscale’s product “despite being inefficient, illiquid, and trading at deep discounts for the past 28 months,” generates about $380 million in annual fees. The report says it has.
The U.S. Securities and Exchange Commission (SEC) has approved multiple Bitcoin futures ETFs, but has yet to approve a Bitcoin spot ETF despite receiving numerous applications.
Analysts led by Gautam Chhugani said, “If BlackRock and others succeed in breaking through the spot ETF wall, it will be the most convenient way for both retail players and institutional investors to gain exposure to Bitcoin. We will provide products that are compliant and easily accepted.”
BlackRock’s fund management arm, iShares, filed with the SEC earlier this month to create a Bitcoin spot ETF. In response, other asset managers, including Invesco and Wisdom Tree, have filed new and re-filed Bitcoin ETFs.
Bernstein notes that Grayscale Bitcoin Trusts account for only 3% of Bitcoin market capitalization, and that “there is room for regulated ETFs to increase their share as Bitcoin’s gateway to custody woes.” are doing.
GBTC currently has an annual fee of 2%, which could be set the same as ETFs on more traditional assets, the report added. Their ETF fees are fairly cheap, often below 0.5%.
Grayscale is owned by CoinDesk’s parent company, Digital Currency Group.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: US Has Room for a Compliant Crypto ETF to Grow Market Share as a Bitcoin On-Ramp: Bernstein