Spot Bitcoin exchange-traded funds (ETFs) are nearing their first month of operation, with the landscape potentially set for consolidation by the end of 2024, according to Valkyrie Funds’ Chief Investment Officer, Steven McClurg.
In an exclusive interview with Decrypt on Feb. 10, McClurg said he anticipates a reduction in the number of issuers from 10 to “about seven or eight.” He attributes this forecast to the financial burdens associated with running a spot Bitcoin ETF, compounded by a competitive fee-lowering trend that threatens the profitability of struggling issuers. McClurg emphasized the critical asset under management threshold of $100 million as 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, according to Bloomberg analyst James Seyffart.
Reflecting on the past month, McClurg noted that market developments have largely align
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Author: Rony Roy
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