Reasons why Grayscale's Bitcoin ETF charges the highest fees!
In a recent interview with CNBC, Grayscale CEO Michael Sonnenshein shed light on the company's policy of charging the highest fees among U.S. Bitcoin ETFs, which include 11 funds.
Despite the 1.5% fee, the Grayscale Bitcoin ETF, which was recently converted into a spot ETF by Grayscale, attracted the largest trading volume compared to other issuers.
Sonnenshein explained the reasons that prompted Grayscale to maintain these high fees, noting the large market share that the company was able to gain.
The Grayscale Bitcoin Trust ETF manages more than $25 billion in assets.
Days before ETFs were approved, financial companies that had applied for the instrument and were awaiting approval saw their fees reduced to attract more investors.
Companies like BlackRock, Fidelity, WisdomTree, and others have joined the trend by reducing their fee structures, and some have even offered a zero-fee structure.
Since the approval of Bitcoin ETFs, some issuers have increased their fees slightly after attracting investor attention.
In contrast, Grayscale continued to apply a 1.5% fee.
Despite having the highest fees, the company currently has more than $25 billion in assets under management.
Why does Grayscale charge the highest fees?
Sonnenschein explained the reasons:
Investors consider factors such as liquidity, track record, and the identity of the actual source of the product.
Grayscale, as a specialist in the field of cryptocurrencies, has preceded others in facilitating access to many of these products.
According to Grayscale's president, investors give more trust to established platforms like their company.
Sonnenschein's comment also suggests that investors will have less confidence in most Bitcoin ETF issuers that have lowered their fees to attract clients, due to a lack of track record in offering such products.
The CEO added that some existing Bitcoin ETF issuers may not last long, while he believes others will make significant profits from the opportunity.
Renewed speculation about Satoshi Nakamoto's return after a mysterious post
In an unexpected development, activity has resumed on the page associated with Satoshi Nakamoto, the mysterious figure behind the founding of Bitcoin, after a period of silence lasting several months.
Last updated in October, the account, known for its Nakamoto imitation, posted posts that deviate from the original content of the Bitcoin white paper.
This post was deleted shortly after.
The latest posts, which appeared just hours ago, included a simple greeting to the scientist with no specific content, but quickly received 1.8 million views, sparking a new wave of speculation in the cryptocurrency community.
The true identity of Satoshi Nakamoto is still shrouded in secrecy and secrecy.
This new activity has reignited curiosity about who is behind this account.
Comments from the crypto community on the post stated that Craig Wright, a controversial figure who previously claimed to be Nakamoto, was controlling the account, but a note at the bottom of the post confirms that the account has no connection to Bitcoin or its anonymous founder.
While theories about Nakamoto's identity abound, including hypotheses that point to Hal Finney or Australian programmer Craig Wright, Nakamoto's true identity remains mysterious and uncertain.
The question that puzzles the cryptocurrency community remains: Will the real Satoshi Nakamoto one day reappear?
The latest post does not provide any clarifications, and leaves the room open for interpretations and speculation, reinforcing the mystery that has surrounded the founder of Bitcoin from the beginning.
Fidelity analysis shows how ETFs impact Bitcoin and its future
Fidelity, the global company specializing in financial services, discussed recent developments in the Bitcoin market, noting that the recent decline in the value of Bitcoin may be just a temporary effect resulting from the launch of Bitcoin ETFs.
Jurian Timmer, the company's global macro director, explained that the current decline in Bitcoin's value represents a short-term positioning adjustment rather than a long-term trend change.
Considering the latest analysis, Timmer noted a 6% decline in the value of Bitcoin over the past week, citing the impact of the launch of newly approved spot funds in the Bitcoin market.
“Teamer” confirms that this decline will not be permanent, expecting the price to find support in the range between $32,000 to $38,000.
Timmer considers the current situation a “news selling period,” anticipating a recovery and increased gains.
It also indicates an increase in open interest in recent weeks, with fluctuations in the Goldman Sachs index of bitcoin-sensitive stocks, which settled at 95.4.
Timmer expects there to be a potential taper in Bitcoin futures, as asset managers begin shifting their exposure from futures to spot contracts.
Timmer believes that the current price of Bitcoin is reasonable, considering factors such as network growth and prevailing interest rates.
The same speaker also expressed his optimism about the future of Bitcoin, expecting to witness its development as a commodity currency on a large scale, although acknowledging that the process may take time.
Although the price of Bitcoin fell contrary to expectations, spot Bitcoin ETFs attracted notable interest, with inflows worth around $1 billion in the first three days of trading.
These financial flows included contributions from leading companies such as BlackRock, Franklin Templeton, and Invesco.
BlackRock, the world's largest asset management company, achieved inflows of $508 million, followed by Fidelity with inflows of $442 million.
The SEC's approval of these investment funds represents an important step in the development of the cryptocurrency industry, and is seen as a precursor to attracting new investors and a potential contribution to the long-term growth of Bitcoin's price.
The growing correlation between Bitcoin and gold is approaching record levels
Recent months have witnessed a significant rise in the correlation between Bitcoin and gold prices, reaching near-record levels, on the back of a bullish close for 2023 and Wall Street’s approval of Bitcoin ETFs.
Historically, the relationship between Bitcoin and gold has seen significant fluctuations, with the prices of both assets moving independently most of the time.
However, the correlation between them grew stronger after the market collapse in 2020 at the beginning of the Covid-19 pandemic, and is now approaching historic levels.
Currently, the correlation between Bitcoin and gold is 0.76, which means a perfect and positive correlation of 76% between the two assets.
While their relationship has not yet reached unprecedented levels, it is now approaching that point.
A report issued by cryptocurrency trading company Binance stated that Bitcoin’s relationship with traditional finance markets is constantly evolving.
According to the report, the correlation between Bitcoin and the S&P 500 has reached its lowest levels in more than three years.
While the correlation between Bitcoin and gold witnessed a significant increase by the end of 2023, reaching about 75%.
The introduction of Bitcoin ETFs to the US market last week marked a major milestone, signaling Bitcoin's move into a stock-like asset class.
However, the correlation between Bitcoin and gold has strengthened, with the correlation between them today reaching 76%, close to the all-time high of 79%.
The charts show the Bitcoin-to-gold ratio rising sharply throughout 2023, reaching a peak near the end of the year before seeing a slight decline.
This index measures the number of ounces of gold that can be purchased with one Bitcoin, and at its peak, the ratio reached 22.5, which means that 22.5 ounces of gold can be purchased with one Bitcoin.
This affinity between Bitcoin and gold highlights the complex and changing nature of Bitcoin as a digital currency and asset class.
As it evolves, Bitcoin appears to retain certain qualities of gold while also adopting traits of stocks and commodities.
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