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<p>The post <a href="https://coinpedia.org/news/survival-of-the-fittest-predicting-the-future-of-bitcoin-spot-etfs/">Spot Bitcoin ETFs: Only Strongest Will Survive as Costs Crush Issuers</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The cryptocurrency market is buzzing with the arrival of <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/">Bitcoin</a> spot ETFs, and Steven McClurg, Chief Investment Officer at Valkyrie Funds, predicts a shakeup in the industry. McClurg anticipates that operational costs and fierce competition will lead to significant changes among ETF issuers by year-end.</p> 
<p>In a chat with Decrypt, McClurg highlighted the tough situation for existing ETF issuers. Among the ten contenders, only seven or eight are expected to endure. High operational costs and rivals slashing fees pose serious challenges for struggling issuers.</p> 
<p>McClurg suggests maintaining at least $100 million in assets under management to stay competitive in the ETF market.</p> 
<h2 class="wp-block-heading" id="h-inflows-on-the-rise"><strong>Inflows </strong>on the Rise</h2> 
<p>Since the <a href="https://www.sec.gov/files/rules/sro/nysearca/2024/34-99306.pdf">Securities and Exchange Commission</a> approved <a href="https://coinpedia.org/research-report/crypto-weekly-report-news-blockchain-insights-etf-updates-and-market-trends/">Bitcoin spot ETFs</a> on January 10, the sector has seen a surge in inflows. The first day of trading witnessed an impressive $4.5 billion in transactions.</p> 
<p>Valkyrie competes with industry giants like <a href="https://coinpedia.org/news/institutional-giants-bet-big-on-bitcoin-whos-dominating-institutional-purchases-this-week/">BlackRock</a> and Fidelity, yet it has shown commendable performance. BlackRock’s iShares Bitcoin ETF and Fidelity’s Wise Origin Bitcoin Fund crossed the $3 billion mark in assets under management within a month. Valkyrie, with approximately $123.7 million in assets as of February 8, might have a lower volume but is poised to break records.</p> 
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   <p lang="en" dir="ltr">Here's updated version of the top 25 ETFs by first month assets with last night's data included which is more officially one full month, or 20 trading days. The four btc ETFs highlighted <a href="https://t.co/4th5ahakTC">pic.twitter.com/4th5ahakTC</a></p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1756020442731614361?ref_src=twsrc%5Etfw">February 9, 2024</a>
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<p>Also Read: <a href="https://coinpedia.org/news/grayscale-ceo-calls-for-sec-to-greenlight-listed-options-for-spot-bitcoin-etf/">Grayscale CEO Eyes Options for Spot Bitcoin ETF, Urges SEC Approval</a></p> 
<h2 class="wp-block-heading" id="h-warning-bells-are-ringing">Warning Bells are Ringing!</h2> 
<p>In response to heightened competition, Valkyrie, like others, has made fee cuts to attract <a href="https://coinpedia.org/news/bitcoin-whale-made-13-5m-profit-in-4-days-heres-how/">investors</a>, aligning its sponsor fee with industry norms at 0.25%.</p> 
<p>McClurg issues a stern warning about the profitability challenges facing current ETF issuers, especially concerning operational costs and sustainability. He advises issuers to amass assets in the millions to secure the longevity of Bitcoin spot ETFs, given their intricate operational costs and the cutthroat competition among issuers.</p> 
<p>Read More: <a href="https://coinpedia.org/news/bitcoin-could-hit-112k-cryptoquant-ceo-drops-insider-info-on-etfs-history-making-trends/">Bitcoin Price Prediction: ETF Inflows, Cash Flood Could Rocket BTC Price to Whopping $112K!</a></p> 
<p><em>As McClurg predicts, the landscape for ETF issuers is challenging. Stay safe out there, folks! </em></p>

Spot Bitcoin ETFs: Only Strongest Will Survive as Costs Crush Issuers

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