Posted 1/19/2024, 2:41:38 PM
Grayscale Loses Billions in Assets as Investors Flee High Fees for Cheaper Bitcoin ETFs
- Grayscale's Bitcoin Trust (GBTC) has lost over $1.7 billion in assets in its first 5 days of trading as a spot Bitcoin ETF
- Rivals like BlackRock and Fidelity are gaining assets and market share with lower fee Bitcoin ETF offerings
- GBTC's high 1.5% expense ratio is prompting investors to switch to cheaper options like Franklin Templeton and Bitwise
- GBTC's assets under management have dropped from $28.6 billion to $23.7 billion, while rivals have gained over $2.8 billion
- It's unclear if the outflows will persist, but cost-sensitive investors are exiting GBTC for lower fee alternatives in the short term