From Nasdaq:

BlackRock, Fidelity, and other financial firms are competing for investors’ money in the battle over newly approved bitcoin ETFs. Grayscale, with almost $30 billion in bitcoin, is the clear leader, but competitors are quickly catching up. Brian D. Evans suggests that Grayscale could be acquired because of its name recognition.

The recent approval of ten spot bitcoin ETFs has opened up unprecedented competition between major financial players, with traditional players possibly considering acquiring their competitors. The spot bitcoin ETF category is already fiercely competitive, and traditional ETF issuers could bolster their assets under management by targeting the right crypto-fund native firm.

CoinShares recently acquired the ETF unit of Valkyrie Investments, suggesting more transactions like this could occur soon. However, acquisitions might be complicated for Grayscale due to uncertainties surrounding the firm, including legal troubles and redemptions. The large amount of money being withdrawn from GBTC could expedite a sale, with Brian D. Evans suggesting that an acquisition could happen sooner rather than later.

The battle for bitcoin ETFs is heating up, with large traditional financial firms targeting native crypto-fund companies for potential acquisitions. Despite challenges facing Grayscale, including legal troubles and large redemptions, experts believe that an acquisition of the firm is a real possibility, especially given the fierce competition in the ETF space.



Read more: Is Grayscale Takeover Bait Amid Bitcoin ETF Battle?