Grayscale CEO Reveals When GBTC Fees Will Go Down Amid Concerning Outflows

Share This Post

Grayscale’s Chief Executive Officer (CEO) Michael Sonnenshein recently revealed when his company will reduce fund fees for the Grayscale Bitcoin Trust (GBTC). His statement comes amid concerns about outflows from the fund, which have continued to overwhelm the Bitcoin ecosystem

GBTC Fees Will Drop When This Happens

According to a Cointelegraph report, Sonnenshein mentioned during an interview at Canaccord Genuity’s Digital Assets Symposium that GBTC fees will only drop when the Spot Bitcoin ETFs “start to mature.” GBTC has the highest fees among all the Spot Bitcoin ETFs with a management fee of 1.5%, compared to the others, which have fees that range between 0.19% to 0.39%.

However, Grayscale’s CEO doesn’t look so concerned. He said he is happy to wait despite GBTC boasting the most outflows among its competition, an occurrence which could be partly due to its high fees. 

Meanwhile, Sonnenshein elaborated on what it means for Spot Bitcoin ETFs to mature. He remarked that the market will consolidate once this happens, and investors will shift their attention to only a few of these ETFs. For now, he believes that these products are still in the first wave of adoption, and investors are still underinvested in them. 

“Those things really haven’t started happening yet,” Sonnenshein claimed while suggesting there will be so much room for growth for these Spot Bitcoin ETFs. Once this first wave of adoption, he stated that fees would come down over time, which would also cause them to reduce fees on GBTC. He further suggested that this next phase of adoption. 

Grayscale Spot Bitcoin ETF Outflows On The Rise

Grayscale’s GBTC outflows are again on the rise, having slowed at some point last month. Data from Farside Investors shows that the fund has recorded net outflows this week. Its largest outflow this week came on April 8, with $303.3 million flowing out of the fund. Meanwhile, it recorded an outflow of $154.9 million, $17.5 million, and $124.9 million on April 9, 10, and 11, respectively. 

The rise in GBTC’s outflows follows Michael Sonnenshein’s recent interview, in which he shared his belief that the fund has begun to reach an equilibrium. He stated that some of the anticipated outflows are largely behind them now. 

Since converting to a Spot Bitcoin ETF, GBTC has experienced over $15 billion in outflows, negatively impacting Bitcoin’s price at different times. Grayscale has had to offload some of its Bitcoin holdings to fulfill these redemptions, adding significant selling pressure on the flagship crypto. 

Interestingly, Grayscale still holds the most BTC (319,252 BTC) among all the Spot Bitcoin ETF issuers. This is because it had a first-mover advantage, having operated as a close-end fund before the Spot Bitcoin ETFs were approved on January 11.  

GBTC price chart from Tradingview.com (Bitcoin Grayscale)

Read Entire Article
spot_img

Related Posts

Avalanche Rising: Will The Wine Capital Fund Turbocharge Gains Above $40?

AVAX, the native currency of Avalanche, a high throughput blockchain, is rising, adding an impressive 9% from May 15 lows Buyers are taking over after weeks of lower lows While the expansion of

Legendary Investor Tim Draper Leads Bitcoin Lending Protocol Zest’s $3.5 Million Seed Round

Draper Associates, the VC firm led by the legendary investor Tim Draper, has led the $35 million seed round of Zest Protocol, a Stacks-based Bitcoin lending market The round, which also had the

Ethereum L2 Eclipse Appoints New CEO Amid Sexual Misconduct Allegations

Neel Somani, Founder of Ethereum Layer-2 Blockchain Eclipse, has been replaced as Chief Executive Officer (CEO) due to accusations of sexual misconduct Eclipse Labs announced Vijay Chetty, the

Major Success For Chainlink: US Banks’ Pilot Program Propels LINK Price Up 6%, Details

The Depository Trust and Clearing Corporation (DTCC) has partnered with blockchain oracle Chainlink and several prominent banking institutions in the United States to conduct a successful pilot aimed

Juno Addresses Banking Service Disruption — ‘This Is Outside Our Control’

Juno Finance acknowledges the disruption in banking services and is collaborating with its brokerage and banking service providers, Synapse and Evolve Bank & Trust, to restore full service as

India’s securities watchdog calls for crypto regulation; Turkey moves toward licensing model

Turkey and India advanced crypto policies on May 16 that could create a framework for businesses and investors operating in each country Reuters reported that the Securities and Exchange Board of
- Advertisement -spot_img