Economist Alex Krüger: IBIT and GBTC are expected to have a greater advantage in the competition for spot Bitcoin ETFs
Renowned economist Alex Krüger stated that the cost of operating an ETF is approximately $200,000 per year (which may add a few basis points on top of that). Therefore, based on a 0.25% fee, this means that the breakeven point for these funds is approximately $80 million in assets under management. As a result, it is expected that most Bitcoin ETFs will at least break even in their first year, but only 2-3 will be able to survive and thrive in the long term. IBIT and GBTC are likely to be the biggest winners, as IBIT will be included in Blackrock's advisory model portfolios, while GBTC has embedded scale (creating liquidity) and some self-regulatory requirements due to capital gains (although at a higher cost). The rest of the companies will find it difficult to stand out.
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