Brutal Bitcoin ETF War Is Only Just Starting

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Last Updated on 27 October 2021 by CryptoTips.eu

Jeroen Kok

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Looks like Carl von Clausewitz’s famous book On War (originally called Vom Kriege) is going to find new readers on Wall Street if we see reporting in the business press as of late. The interest of investors for all things Bitcoin ETF (exchange traded fund) is so great that a price war on fees has already started, according to the Financial Times.

Although the first Bitcoin ETF (BTC) offered by ProShares debuted on the New York Stock Exchange only last week, a second ETF has already entered the race. The exchange traded fund carried by Valkyrie doubled in just 3 short days.

Advertentie.

SEC gives in

Last week, without warning, the Securities and Exchange Commission (SEC) finally gave in to the pressure of countless requests for Bitcoin-based exchange-traded funds (ETFs). Bitcoin reacted by reaching a new all-time-high of $67,000.

As Bloomberg reports, the Bitcoin ETF offered by Valkyrie began trading on the NASDAQ exchange with nearly $ 80 million in trading volume on that first day of trading. Indeed, shares in the BTF fund were launched with an unit value of $ 25, and more than 3.1 million of them changed hands in those first hours of trading.

Nathan Geraci, president of the ETF Store (a Kansas-based financial adviser) claims this is only the beginning. He stated:

BITO has already increased a huge advantage as first mover. . . The attention around this product is unlike anything in the history of ETFs.

That said, at the end of the day, bitcoin futures ETFs are commodity products. Costs matter and I expect a brutal fee war to play out in this category. This is the opening salvo in what will be a ruthless, ongoing fee competition.

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