Valkurie Funds and Bloomberg: Liquidation parts bitcoin-ETF inevitable

Valkуrie Funds, an investment company, predicts that the number of active exchange-traded funds (ETFs) for Bitcoin will decrease to seven or eight by the end of the year.

These Bitcoin ETFs are expected to shut down due to high management costs and low profits resulting from intense competition. Valkurie’s investment director, Steven McClurg, believes that spot funds are at high risk of being liquidated unless they invest a minimum of $100 million in derivatives.

According to James Seyffart, a stock analyst at Bloomberg, the Franklin Bitcoin ETF (EZBC) and WinsomTree Bitcoin Fund (BTCW) are currently experiencing the lowest demand in the market. The shares of these ETFs have received investments of only $72.5 million and $18.1 million, respectively.

If additional funding is not secured, both the Franklin Bitcoin ETF (EZBC) and WinsomTree Bitcoin Fund may announce their liquidation before the year’s end.

Earlier, JPMorgan bank experts released a report stating that investor interest in spot bitcoin exchange-traded funds is declining.