CryptoMediaClub
Monday, July 28, 2025
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home All news

Spot Bitcoin ETF will be ‘bloodbath’ for crypto exchanges, analyst says

18.12.2023
A A
0
120
VIEWS
ShareShare

While the crypto community eagerly awaits the possible approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States, some analysts are warning this could potentially trigger unwanted consequences for cryptocurrency exchanges.

Several industry observers have predicted that a spot BTC ETF could start trading in early 2024, in an event that, when paired with Bitcoin’s upcoming block reward halving expected in April, Blockstream CEO Adam Back believes could propel BTC to $100,000.

Bitcoin proponents such as Jan3 CEO Samson Mow have said that approval of a spot Bitcoin ETF in the U.S. could even drive Bitcoin as high as $1 million in the “days to weeks” following.

But the forecast isn’t that optimistic for centralized cryptocurrency exchanges, according to ETF Store president Nate Geraci and Bloomberg ETF analyst Eric Balchunas.

Once approved, a potential spot Bitcoin ETF in the U.S. would be a “bloodbath” for cryptocurrency exchanges, Geraci wrote on X (formerly Twitter) on Dec. 17.

According to Geraci, retail spot Bitcoin ETF buyers and sellers will benefit from underlying institutional trade execution and commissions. On the other hand, retail users of crypto exchanges will get “retail trade execution and commissions,” Geraci noted, stressing that those will need to improve to compete with a spot Bitcoin ETF.

Bloomberg ETF analyst Eric Balchunas emphasized that a spot Bitcoin ETF will cost 0.01% to trade, which is the average fee for ETF trading.

In contrast, trading costs on exchanges like Coinbase reach 0.6%, depending on the cryptocurrency, transaction size and trading pairs.

Once approved, a spot Bitcoin ETF will create more price competition in the crypto industry, bringing money back to investors from exchanges that spend massive amounts of cash to advertise their services at events like the Super Bowl, Balchunas believes.

Related: What happened in crypto this weekend?

“It would be the last ‘Crypto Super Bowl’ if they launch ETFs, because ETFs are such a thin, rough industry and some of these crypto exchanges were sort of selling populism making a ton of money on their really high fees,” he said in an interview with industry journalist Laura Shin in September 2023.

Historically, Coinbase has earned most of its revenue from transaction fees. In 2022, Coinbase made $2.4 billion in transaction fees from institutional and retail investors, which accounted for 77% of its total net revenue of $3.1 billion. The firm has been working to cut its reliance on fees, though, actively diversifying the revenue streams to other income-earning services such as subscriptions.

Magazine: Lawmakers’ fear and doubt drives proposed crypto regulations in US

Share9Tweet6ShareSharePin2

Related Posts

South Korean Crypto Exchanges Paid Customers $87M in Interest in Past Year
All news

South Korean Crypto Exchanges Paid Customers $87M in Interest in Past Year

28.07.2025
0

South Korean crypto exchanges paid their customers $87 million worth of interest on their fiat deposits in the past 12...

Read moreDetails
Tyler Winklevoss Says JPMorgan Halted Gemini Onboarding Over Public Criticism

Tyler Winklevoss Says JPMorgan Halted Gemini Onboarding Over Public Criticism

28.07.2025
Ripple’s Chris Larsen Still Holds 2.58B XRP, Analyst Warns of Potential Sell Pressure

Ripple’s Chris Larsen Still Holds 2.58B XRP, Analyst Warns of Potential Sell Pressure

27.07.2025
Solana Price Prediction: SOL Breaks Key Resistance – What This Means for Future Gains

Solana Price Prediction: SOL Breaks Key Resistance – What This Means for Future Gains

27.07.2025
Bitwise CIO Bets on Bitcoin Rally in 2026, Defying 4-Year Cycle

Bitwise CIO Bets on Bitcoin Rally in 2026, Defying 4-Year Cycle

27.07.2025
Load More
Next Post
Standard for Tokenized Real-World Assets Created on Ethereum

Standard for Tokenized Real-World Assets Created on Ethereum

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

Choose Rejects Coinbase’s Protection, Permitting Investor Lawsuit to Proceed in New York

Choose Rejects Coinbase’s Protection, Permitting Investor Lawsuit to Proceed in New York

6 months ago
$300M liquidated in Bitcoin’s descent below $29k

$300M liquidated in Bitcoin’s descent below $29k

2 years ago
Is Bhutan Preparing to Sell? Royal Government Moves $66M Worth of BTC to Binance

Is Bhutan Preparing to Sell? Royal Government Moves $66M Worth of BTC to Binance

9 months ago
Invesco Galaxy applies for spot Ether ETF

Invesco Galaxy applies for spot Ether ETF

2 years ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Solana Price Prediction: SOL Breaks Key Resistance – What This Means for Future Gains

Bitwise CIO Bets on Bitcoin Rally in 2026, Defying 4-Year Cycle

Ethereum Price Prediction: ETFs Log 17-Day Inflow Streak – Is a Supply Shock Coming?

Bitcoin Price Prediction: Satoshi-Era Whale Exit Fuels Volatility — What’s Next?

Increased market volatility as the U.S.–Europe tariff deadline looms

What if Strategy Had Invested in XRP Instead of Bitcoin? 

Trending

South Korean Crypto Exchanges Paid Customers $87M in Interest in Past Year
All news

South Korean Crypto Exchanges Paid Customers $87M in Interest in Past Year

28.07.2025
0

South Korean crypto exchanges paid their customers $87 million worth of interest on their fiat deposits in...

Tyler Winklevoss Says JPMorgan Halted Gemini Onboarding Over Public Criticism

Tyler Winklevoss Says JPMorgan Halted Gemini Onboarding Over Public Criticism

28.07.2025
Ripple’s Chris Larsen Still Holds 2.58B XRP, Analyst Warns of Potential Sell Pressure

Ripple’s Chris Larsen Still Holds 2.58B XRP, Analyst Warns of Potential Sell Pressure

27.07.2025
Solana Price Prediction: SOL Breaks Key Resistance – What This Means for Future Gains

Solana Price Prediction: SOL Breaks Key Resistance – What This Means for Future Gains

27.07.2025
Bitwise CIO Bets on Bitcoin Rally in 2026, Defying 4-Year Cycle

Bitwise CIO Bets on Bitcoin Rally in 2026, Defying 4-Year Cycle

27.07.2025
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz