Summary
US spot bitcoin ETFs are seeing net inflows, but some firms with higher-cost offerings are losing assets. Purpose Investments, ProShares, and Grayscale Investments are standing by their funds despite outflows. Purpose Investments defends its 1.5% management fee for its Bitcoin ETF, highlighting its dual-custody model and strong track record. Canadian-based products may face pressure to lower fees due to US spot bitcoin ETF launches. 3iQ CoinShares Bitcoin ETF is reviewing its fee structure. ProShares Bitcoin Strategy ETF has seen outflows since US spot funds launched due to the mature, liquid, and regulated bitcoin futures market.
Key Points
1. US spot bitcoin ETFs continue to see net inflows, while some higher-cost offerings have experienced declining assets under management.
2. Purpose Investments, ProShares, and Grayscale Investments have maintained their funds’ value propositions despite bleeding assets, with Grayscale’s Bitcoin Trust ETF (GBTC) carrying a 1.5% management fee.
3. Purpose Investments’ Bitcoin ETF (BTCC) has seen outflows in 2024, but the company stands by its 1.5% management expense ratio and strong value proposition, including a dual-custody model and history of high volume base support.