Grayscale CEO predicts that many of the 11 approved bitcoin ETFs will not endure, justifies high fees.

• Michael Sonnenshein, CEO of Grayscale Investments, stated on CNBC that out of the 11 approved bitcoin exchange-traded funds, only a few are likely to endure.
• The Grayscale Bitcoin Trust ETF's 1.5% fee was defended, despite most approved ETFs having fees ranging from 0.2% to 0.4%.
• Sonnenshein explained its rationale for the fee through various reasons, such as being the largest bitcoin fund, having a 10-year history of successful operation, and possessing a diverse investor base.

Michael Sonnenshein, CEO of Grayscale Investments, stated on CNBC that most approved bitcoin exchange-traded funds will not endure, while justifying the highest fees in the market for Grayscale's own product.

The Grayscale Bitcoin Trust ETF has the largest assets under management globally, with over $25 billion.

The approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission earlier this month brought attention to the management fees charged by firms such as BlackRock and Fidelity.

ETF issuers initially charged 0% fees for a limited time before raising them slightly. The majority of approved ETFs have fees ranging from 0.2% to 0.4%.

But the Grayscale Bitcoin Trust ETF charges a 1.5% fee.

Sonnenshein explained the reasons for the fee, including being the largest bitcoin fund, having a 10-year history of success, and having a diverse investor base.

CNBC interviewed Sonnenshein at the World Economic Forum in Davos on Thursday, where he stated that investors are heavily considering factors such as liquidity, track record, and the actual issuer behind the product when making investment decisions. Grayscale, being a crypto specialist, has played a significant role in paving the way for various crypto products to enter the market.

According to Sonnenshein, the lower fees of other ETFs can be attributed to the fact that their products lack a proven track record, and issuers are attempting to entice investors with fee incentives.

Sonnenshein stated that from our perspective, their dedication to the asset class may be questioned at times.

According to the Grayscale CEO, two to three Bitcoin ETFs may achieve a significant amount of assets under management, while the others may be removed from the market.

Sonnenshein stated that he does not believe the marketplace will have 11 spot products.