Topic: [2023-11-28] Reuters: In spot bitcoin ETF race, some pioneers stick to the ... (Read 51 times)
November 30, 2023, 12:27:35 PM
For the larger providers a few millions dollars is a relative pittance. I think the "no first mover advantage" is why the SEC is likely to approve a bunch at once if they approve any now - they don't want to be seen playing favorites. This is good for everyone because competition will help keep costs low.
November 28, 2023, 07:44:33 PM
Today's article from Reuters offers a bit of a deeper dive into the specifics of Bitcoin spot ETFs and discusses why some companies decided not to go that route.
Spoiler: The upfront costs of launching complex ETFs could go into millions of dollars, and since there already are multiple filings, no one has the first mover advantage.
In spot bitcoin ETF race, some pioneers stick to the sidelines
https://www.reuters.com/technology/spot-bitcoin-etf-race-some-pioneers-stick-sidelines-2023-11-28/
Spoiler: The upfront costs of launching complex ETFs could go into millions of dollars, and since there already are multiple filings, no one has the first mover advantage.
In spot bitcoin ETF race, some pioneers stick to the sidelines
https://www.reuters.com/technology/spot-bitcoin-etf-race-some-pioneers-stick-sidelines-2023-11-28/
Quote
Despite growing excitement that spot bitcoin exchange-traded funds (ETFs) will soon win regulatory approval, some cryptocurrency ETF pioneers plan to sit out what is expected to be a fierce industry battle for market share.
Demand for a bitcoin ETF, which would allow retail and institutional investors to easily bet on the price of the world's biggest cryptocurrency, is expected to draw in as much as $3 billion from investors in the first few days of trading and pull in billions more thereafter.
Yet some established names in the blockchain and cryptocurrency space - including ProShares, Amplify Investments and Roundhill - are so far steering clear of launching a bitcoin ETF. They worry that the field is too crowded, the regulatory and marketing costs too high, and that demand will not be strong enough to compensate for that.
Though they remain a small minority in a race where both big and small players are diving in, their skepticism suggests the hype over a spot bitcoin ETF may be misplaced and that the products could prove unprofitable for some issuers rushing into the space.
...
Demand for a bitcoin ETF, which would allow retail and institutional investors to easily bet on the price of the world's biggest cryptocurrency, is expected to draw in as much as $3 billion from investors in the first few days of trading and pull in billions more thereafter.
Yet some established names in the blockchain and cryptocurrency space - including ProShares, Amplify Investments and Roundhill - are so far steering clear of launching a bitcoin ETF. They worry that the field is too crowded, the regulatory and marketing costs too high, and that demand will not be strong enough to compensate for that.
Though they remain a small minority in a race where both big and small players are diving in, their skepticism suggests the hype over a spot bitcoin ETF may be misplaced and that the products could prove unprofitable for some issuers rushing into the space.
...
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