According to CoinDesk, the competition for investors' money in newly approved bitcoin ETFs is intensifying among financial firms such as BlackRock and Fidelity. To gain an advantage, experts suggest that these firms could consider acquiring Grayscale, the incumbent in bitcoin investing. Grayscale recently received permission to convert its Grayscale Bitcoin Trust (GBTC) into an ETF, while nine other companies were granted the ability to create their own bitcoin ETFs.
Grayscale began with a significant lead, having accumulated nearly $30 billion of bitcoin after operating as a closed-end fund for a decade. Although the gap has narrowed as investors withdraw money from GBTC and new funds collect money, GBTC remains far ahead of BlackRock and Fidelity, both at $1.4 billion. Brian D. Evans, CEO and founder of BDE Ventures, believes that Grayscale could be acquired due to its established reputation.
Traditional financial players have often grown their businesses by acquiring competitors, and the recent launch of ten new spot bitcoin ETFs has intensified competition between crypto and traditional finance companies. Nate Geraci, president of the ETF Store, an advisory firm, suggests that a strategic acquisition of Grayscale could be beneficial for a traditional ETF issuer. However, uncertainties surrounding Grayscale's parent company, Digital Currency Group (DCG), and the large amount of money being withdrawn from GBTC could affect the timeline for a potential acquisition.
Huang Bo
