Only two or three places where Bitcoin ETFs are here to stay.

Most bitcoin (BTC) exchange-traded funds (ETFs) approved by the U.S. Securities and Exchange Commission (SEC) will not survive, according to Michael Sonnenschein, CEO of Grayscale Investments.

In an interview with CNBC at the World Economic Forum on January 18, Sonnenshein predicted that most of the 11 approved Bitcoin ETFs could collapse.

The US SEC officially approved 11 spot bitcoin ETFs on January 10, 10 of which will begin trading the next day. Many ETF issuers have been actively lowering their trading fees to increase competitiveness with other ETF sponsors, with most approved ETFs keeping fees between 0.2% and 0.4%. Multi-position Bitcoin ETF providers also offer temporary fee waivers.

On the other hand, Greyscale – the largest bitcoin holder among spot Bitcoin ETF issuers – charges up to 1.5% with no breaks.

Grayscale CEO Sonnenshein defended the market's highest fees for Bitcoin ETF products, saying only two or three Bitcoin ETFs are here to stay and the rest will be pulled from the market. he said:

“From our perspective, I think it sometimes calls into question their long-term commitment to the property sector […] Ultimately, I don't think the marketplace will have these 11 places products that we find on our own.

Sonnenshein's comments came on the fifth day of trading for the Bitcoin ETF in the United States. Since the start of trading, Grayscale has become the only issuer that has been aggressively dumping Bitcoin, dropping to 37,947 BTC on January 18. In contrast, the other nine issuers have added at least 40,000 BTC to their offerings since they started trading.

Quantum Economics founder Matty Greenspan doesn't rule out the possibility that most ETF issuers will fail in the long run because most investors will choose to hold their assets or prefer to keep themselves.

Related: Spot Bitcoin ETFs Gain Another 10,600 BTC on Day 5

“For now, it's a good way for some portfolio managers to get exposure,” Greenspan told Cointelegraph.

But getting 11 is ridiculous. There has to be consolidation and everyone knows it, that's why payments are on the floor.

Some executives believe that there is no conflict between self-hedging and Bitcoin ETFs among Bitcoin ETF issuers in the space. Cathy Wood, CEO of ARK Invest, said on January 10 during X Spaces that “self-hedging and ETFs are not mutually exclusive.” She also explained that ARK's Bitcoin ETF – which charges a fee of 0.21% – does not aim to maximize profits. .

“We see Bitcoin as a public good. And one way to do that is with this low-fee product. We have other actively managed strategies where we can do more on the profitability side. That's not our goal,” Wood said.

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