After several failed attempts, crypto investors celebrate the long-awaited spot Bitcoin Exchange-Traded Funds (ETF) approved by the US Securities and Exchange Commission (SEC).

On Wednesday, January 10, the SEC approved 11 Bitcoin ETFs simultaneously to provide a “level playing field” for the issuers.

Only One Will Win Bitcoin ETF War?

Many ETF issuers offered low fees to attract more investors to choose them over their competitors. Some of them, like Fidelity and Bitwise, even offer to waive their management fees for the first six months.

However, with many options, the question of who will be the winner among the ETF issuers prevails. CEO of Galaxy Digital, Michael Novogratz, joined CNBC’s ‘Squawk Box’ on January 11 to discuss this matter.

Since not all ETFs are created the same way, as Novogratz explains, the execution of an ETF, the liquidity, and hidden fees all play a significant factor in its success when several “sales forces are trying to pull in money.”

The CEO believes that “tracking error” sets apart his Invesco Galaxy Bitcoin ETF (BTCO), now trading on the Cboe exchange, from other ETFs. He stated:

We have an ETF in Canada with CI-Group. We started in second. We were in second place, and now we’re the largest ETF. And I looked at last year’s tracking error. Cause all you really care about as an investor is ‘does it attract bitcoin?’ We had less than 1% tracking error. Our largest competitor had 11%.

Novogratz is confident in the success of his ETF, “We’ve done it before. In Germany, Canada, Brazil. We know how to run a cash ETF,” he added. He also believes that there won’t be a singular winner among the ETFs, stating:

So I think in the long run you are going to have two or three that actually win. I don’t think it will be one winner, I think it will be a couple of winners.

Bitwise AM Believes That Competition Will Be Healthy For Investors

Katherine Dowling, Bitwise AM’s General Counsel and Chief Compliance Officer, Go to Source to See Full Article
Author: rubmargarcia

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