CandleFocus

Grayscale’s High ETF Fee Keeps the Cash Flowing In Even as Investors Withdraw

Author: Content Editor
Grayscale's GBTC has experienced a 50% decrease in assets under management (AUM) due to significant outflows since becoming an exchange-traded fund. However, despite this decline, Grayscale is generating five times the amount of income from its bitcoin ETF compared to BlackRock's IBIT. This is primarily due to GBTC's higher expense ratio of 1.50% compared to IBIT's 0.25%. Grayscale's GBTC, with approximately $14 billion AUM, is earning around $205 million annually, while the rival IBIT, with $17 billion AUM, is only earning $42.5 million. The difference in income is mainly attributed to the disparity in fees. Grayscale's GBTC, despite suffering outflows as investors seek lower-cost options, is still receiving inflows due to its head start in the market.

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