Bitcoin ETFs will be 'winner take most' market, says Bitwise exec

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Here are the competitive forces that will shape a spot bitcoin ETF market.

Stay updated on Pro Crypto Ecosystems news by locking ACS tokens with The Block.No wallet? No problem. You can set one up for free. We recommend Torus for first-time users.The list of contenders vying for approval from the US Securities and Exchange Commission to launch a spot bitcoin ETF continues to grow, but only a select few of those products will wind up being successful, according to Matthew Hougan of Bitwise.

Typically, the firm that is first to market snags the most assets under management. The largest gold, crude, and crypto equity ETFs were first movers in their respective sectors, with SDPR's Gold Trust currently boasting nearly double the amount of assets of its closest competitor."Imagine ETF A launches on Monday and ETF B launches on Tuesday. On Monday, ETF A will attract 100% of the assets and 100% of the trading volume.

"So with a bitcoin ETFs, I believe iShares could actually come in late and still take meaningful market share," Geraci noted."Much, much tough for smaller issuers to come in late." Cathie Wood's ARK, which filed for a spot bitcoin ETF with European asset manager 21Shares, said last week that it was first in line to get approval from regulators, as noted by

 

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