Valkyrie Exec Predicts Fewer Bitcoin ETF Issuers By Year-End
Spot Bitcoin ETFs are nearing their first month of operation, with the market potentially consolidating by the end of 2024, according to Valkyrie Funds’ Chief Investment Officer, Steven McClurg.
McClurg anticipates a reduction in the number of issuers from 10 to “about seven or eight,” attributed to the financial burdens associated with running a spot Bitcoin ETF and a competitive fee-lowering trend that threatens the profitability of struggling issuers.
The critical asset under management threshold of $100 million is a determinant for an ETF’s viability. Since the U.S. Securities and Exchange Commission approved the first Bitcoin spot ETFs on Jan. 10, the market response has been robust, with $4.5 billion traded on the first day alone.
Recent data shows continued strong inflow, with $400 million reported in a single day. Valkyrie, alongside heavyweight competitors like BlackRock and Fidelity, is navigating a crowded market, with BlackRock’s iShares Bitcoin ETF and Fidelity Wise Origin Bitcoin Fund exceeding $3 billion in assets under management within a month.
McClurg remains optimistic about Valkyrie’s performance, particularly against similar-tier competitors, attributing success to the firm’s digital asset expertise and traditional market experience.
(With inputs from Shikha Singh)
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