Kraken’s CEO David Ripley has forecasted a positive projection for Bitcoin exchange-traded funds (ETF) and clarified the timeline for the crypto exchange’s introduction into the custody product sector.
“As far as impact on Kraken’s business, this is undoubtably a net positive for us,” he states.
Kraken CEO: Bitcoin ETFs and Crypto Products Incomparable
CEO of crypto exchange Kraken, David Ripley, outlines that acquiring crypto is simplified through spot Bitcoin ETFs, providing exposure and awareness for new investors.
However, it falls short of offering customers the extensive exposure available through products on crypto exchanges.
He points out that while many may opt for an ETF, many must realize that crypto exchanges provide significantly broader exposure to a wider array of crypto products that cannot be accessed through ETFs.
Ridley contended that comparing the lower trading costs of ETFs with those of products on crypto exchanges is challenging.
In light of heightened competition among asset management firms tightening fees, Ridley declares he presently has no plans to modify Kraken’s fees. A difference is evident when comparing the annual cost of Bitcoin ETFs. These stand at 20 basis points or below. A substantially amount cheaper than trading on a crypto exchange.
“We view the offerings of products different enough, they are not direct substitutes, yes there is a different cost basis for that product, but that is a different product.”
Kraken is set to launch its custody product this quarter and Ridley claims that the exchange has “one of the strongest when it comes to security.”
Read more: Kraken Review 2024: A Review of Its Security, Fees, and Features
Meanwhile, BeInCrypto recently reported that Grayscale’s high trading fees on its spot Bitcoin ETF may have turned eyes towards its competitors which charge substantially lower fees.
GBTC imposes fees as high as 1.5%. In contrast, competitors like BlackRock’s iShares Bitcoin Trust charge fees of up to 0.25%, which is considerably lower than GBTC.
As a result, some community members believe that investors might switch to other Bitcoin ETFs that offer lower fees.
Bitcoin ETF Advertisements Appeal to the Masses
Amid the approval of spot Bitcoin exchange-traded fund (ETF) products, two asset management firms, BlackRock and Bitwise, launched television advertisements.
BlackRock released its ETF post-approval, while Bitwise, anticipating approval, had released a lighthearted advertisement approximately a month earlier.
Jay Jacobs, BlackRock’s head of thematics and alternative ETFs, took the forefront in BlackRock’s advertisement. The advertisement conveyed a positive outlook on Bitcoin, asserting that it will exert “profound implications for the future of finance.”
Meanwhile, Bitwise delivered a shorter, less informative advertisement, resembling a stereotypical prime-time television commercial.
The ad features Jonathan Goldsmith and plays on his past role as the most interesting man in the world, inferring that Bitcoin is an intriguing asset.
Read more: 4 Best Crypto Learn and Earn Platforms in 2024
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