Grayscale Investments CEO Michael Sonnenshein told CNBC in an interview in Davos posted on Friday that the majority of the 11 spot bitcoin exchange-traded funds (ETFs), which were recently approved, won't survive, adding that he sees only two to three of them making it.
He went on to defend the company's high fee of 1.5% for the Grayscale Bitcoin Trust ETF, citing a 10-year successful track record. He further added that the fee is justifiable, as this is the largest bitcoin fund, which boasts a wide-ranging investor base. The Grayscale chief said that the products of firms offering lower fees "don't have a track record."
"Investors are weighing heavily things like liquidity and track record and who the actual issuer is behind the product. Grayscale is a crypto specialist. And it has really paved the way for a lot of these products coming through," Sonneshein stated.
