Asset manager Grayscale is faced with a major <\/span>hurdle<\/span><\/a> in its quest for a spot Bitcoin (BTC) Exchange Traded Fund (ETF). Earlier this week, a Federal court <\/span>ruled<\/span><\/a> that the United States Securities and Exchange Commission (SEC) must review its rejection of Grayscale\u2019s application to convert its Grayscale Bitcoin Trust (GBTC) product into a spot Bitcoin ETF.\u00a0<\/span><\/p>\n This Grayscale ruling marked a second landslide for the cryptocurrency industry against the markets regulator following Ripple\u2019s victory back in July. According to some analysts led by Gautam Chhugani, the ruling \u201clikely clears the path for a spot bitcoin ETF,\u201d and <\/span>increases<\/span><\/a> the chances that the SEC might approve all the current <\/span>applications<\/span><\/a> from BlackRock, Fidelity, WisdomTree and others together.<\/span><\/p>\n <\/p>\n However, Grayscale has found itself in the never-ending contest of the Exchange Traded Products (ETP) industry over fees. The current form of the Grayscale ETF carries a 2% fee, a peg the company may find tough to sustain if it will stay competitive.\u00a0<\/span><\/p>\n Looking at other U.S.-listed ETFs that have an average of 0.54% or other globally-listed crypto exchange-traded products with a 1.48% fee, the Grayscale product fee can be judged to be considerably high.\u00a0<\/span><\/p>\n <\/p>\n Michael Sonnenshein, Grayscale\u2019s Chief Executive Officer (CEO) claimed that an adjustment will possibly be made to the fees when GBTC converts to an ETF. Markedly, he did not specify how low Grayscale will be willing to go on the fees.<\/span><\/p>\n <\/p>\n It is worth noting that the likes of BlackRock Inc., Invesco Ltd and Fidelity Investment are yet to state specific fees for their proposed Bitcoin ETFs. Still, it is expected to be only a fraction of Grayscale\u2019s fee. Nate Geraci, president of popular advisory firm The ETF Store, reiterated this possibility.\u00a0<\/span><\/p>\n \u201cGrayscale is up against issuers such as BlackRock and Invesco who are highly accustomed to bludgeoning each other on fees. Spot-Bitcoin ETFs will all generally look the same \u2013 they simply hold Bitcoin \u2014 which makes fees a key differentiator,\u201d he said.<\/span><\/p>\n Geraci went on to suggest that Grayscale may need to enter the ETF \u201cTerrordome\u201d with an open mind which may mean going from a 200 basis point to a 20 basis point.<\/span><\/p>\n <\/p>\n <\/p>\n Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter<\/a>, Linkedin<\/a> <\/p><\/div>\n<\/p><\/div>\nGrayscale Bags New Crypto Victory<\/strong><\/h2>\n
Grayscale to Face Tough Fee Competition<\/strong><\/h2>\n
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