US Spot-Bitcoin ETF Frenzy Takes Toll on Legacy Funds

The frenzy for spot-Bitcoin ETFs in the US is taking a heavy toll on years-old investment products that had led the way in bringing cryptocurrencies to the fund world.

Investors have pulled a total of $738 million from Bitcoin vehicles on German, Canadian, and Swedish exchanges so far in 2024, according to data from CoinShares International Ltd. As Bitcoin marks new all-time highs, the majority of exiting investors are likely switching from one Bitcoin product to another in pursuit of lower management fees, according to Stéphane Ouellette, chief executive officer at FRNT Financial Inc.