Bitcoin ETF: Valkyrie CIO Foresees Market Shift
Bitcoin ETFs have reached their one-month milestone since launch, with predictions of industry consolidation by year-end due to high operational costs.
Steven McClurg, CIO of Valkyrie Funds, notes strong investor interest since SEC approval on Jan. 10, leading to a $4.5 billion trading volume on launch day.
Despite market events meeting expectations, Grayscale’s transition caused a brief sell-off.
Valkyrie, among nine competitors, managed $123.7 million in assets by Feb. 8, crediting its performance to extensive market experience.
McClurg anticipates further outflows amid intense competition, with some issuers possibly withdrawing due to profitability challenges. Despite growth, the sector faces uncertainties, with smaller players striving to stay competitive.
However, the future landscape remains uncertain as market dynamics continue to evolve.
As regulations and investor preferences shift, the ETF industry may witness significant transformations in the coming months.