Grayscale’s GBTC Dominates Bitcoin ETF Revenue Despite Higher Fees

• Grayscale Bitcoin Trust ETF has generated more revenue compared to all other spot Bitcoin exchange-traded funds.
• The fund generates around $268.5 million in annual revenue, having a 1.5% expense ratio applied to $17.9 billion in assets under management.

Grayscale’s Bitcoin Trust ETF (GBTC) has surpassed all other spot Bitcoin exchange-traded funds combined in terms of revenue generation. It is noteworthy that Grayscale charges seven times higher fees as compared to its competitors and still it has managed to be on the top. 

The President of ETF Store, Nate Geraci, posted on X on April 27 that GBTC is still making more dollars than any other ETFs, and others are not even close. As per the data from Coinglass, the fund generates around $268.5 million in annual revenue, having a 1.5% expense ratio applied to $17.9 billion in assets under management. 

Geraci showed that all the other U.S. Bitcoin ETFs make an annual revenue of around $211.8 million from overall $89 billion in assets under management. In January 2024, Grayscale’s spot Bitcoin ETFs went live, and since then, more than half of its holdings have been lost, but it is still dominating the revenue section. 

GBTC’s Dominance Highlights the Impact of High Fees on ETF Revenues

The control of Grayscale over GBTC’s management allows it to charge a 1.5% fee. Compared to other ETFs like BlackRock’s iShares Bitcoin ETF (IBIT), it has notably more assets at $56 billion, but it is not as profitable because of lower fees. 

However, the Chief Executive Officer of Grayscale, Michael Sonnenshein, claimed in April 2024 that the fees will come down after the ETF market matures. Last month, Grayscale launched a cheaper product, the Bitcoin Mini Trust, to broaden Grayscale’s product portfolio and appeal to low-cost investors. 

In 2023, GBTC began its journey as a private trust and became an ETF last year. Surviving in this highly competitive market by charging higher fees undoubtedly reflects that fees are a very important factor for the revenue of ETFs. 

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