How many crypto ETFs are too many? Some industry leaders say that we have reached our limits

How many crypto ETFs are too many? Some industry leaders say that we have reached our limits

crypto-focused ETFs are becoming increasingly popular.

The impending entry of Charles Schwab to the ETF-Arena for digital assets that was announced this week causes industry participants to analyze the number of traditional financial experts who have introduced such products-which may dampen the prospects for future competition.

Schwab's introduction of his Crypto Thematic ETF (STCE) this week - which undercuts the cost quotas of similar funds from Blackrock, Fidelity and Investco - should save other potential first -time actors from the ETF.

"This ETF segment is already oversaturated," Geraci told Blockworks. "In view of the large number of products that have flooded the market last year or something, together with the most lukewarm interest of investors, I actually think that we could see more closures here in the future."

Leah Wald, CEO of Valkyrie, said Blockworks, however, in an email that she predicted a demand for many other crypto-related products, and added that the introduction of this ETF by Schwab was evidence that institutions are increasingly friends with the investment class. Valkyrie currently offers a Bitcoin futures ETF and a Bitcoin mining ETF.

"We welcome your entry into the area and ... believe that there is still a lot of space for growth in the variety of offers that investors are available," said Wald. "The capacity is needed as soon as there is regulatory clarity and the wave of capital, which it brings with it, needs more than a handful of contact points."

Slow financial growth in Rauer Performance

The Crypto Economy ETF (Sato) from Invalco was launched last October and has a fortune of around $ 4 million. René Reyna The head of the topic and special-ETF strategy of the US-Dollar difficult fund, said that Digital assets remain an up -and -coming investment topic that requires training of investors.

"We are committed to the area of ​​digital assets and will continue to observe the demand from investors and the possibilities for product development," said Reyna Blockworks in an email.

The Crypto Industry and Digital Payments ETF (FDIG) by Fidelity and the Ishares Blockchain and Tech ETF (IBLC) from BlackRock, both of which were launched in April, have an administrative assets of around $ 13 million or $ 6 million

spokesman for Blackrock and Fidelity rejected a statement.

Although most crypto ETFs have not collected any assets in the turmoil of a persistent Baisse in the past few months, the interest in these products could revive after the end of the sale, said Neena Mishra, director of ETF reviews at Zack's Investment Research.

"ETF providers are also aware that they cannot ignore digital assets and blockchain technology," Mishra told Blockworks.

The ETF from Schwab depicts its own index crypto -related shares. The index TOP Five Intake were the industry stars Microstrategy on Tuesday Marathon Digital, Riot Blockchain, Silvergate Capital and Coinbase.

Marathon Digital, Riot Blockchain and Coinbase are also one of the top 5 participations from IBLC and FDIG, while Marathon, Riot and Silvergate are one of the top 5 from Sato.

crypto -related shares and ETFs were put under pressure in the middle of the sale of Bitcoin and other digital assets. The largest - the transformational data sharing ETF (Blok) from Amplify Investments - has fallen by about 44 % in the previous course.

SATO has lost even more and has so far broken up by 59 % in 2022, while IBLC and FDig fell by about 18 % or 25 % in the same period.

"If Bitcoin recovered strongly, we could see many new products," said Mishra. "However, I am not sure whether many providers would follow Schwab by putting on ultra-bearing crypto-related ETFs, since investors pay more attention to performance in thematic ETF areas."

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The contribution How many crypto ETFs are too many? Some industry experts say we have reached our limit is not a financial advice.