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Crypto asset management firm Grayscale with $26 billion allocated in its ETF fund GBTC plans to drop fees as its outflows reach $12 billion.
Grayscale CEO Michael Sonnenshein has announced plans to reduce fees on the Grayscale Bitcoin Trust ETF (GBTC) in the coming months as the crypto market craze seems to cool off. In an interview with CNBC, Sonnenshein revealed plans to gradually decrease fees on GBTC, justifying the current 1.5% management fee by citing GBTC’s liquidity and track record compared to other exchange-traded funds (ETFs) in the market.
“I’ll happily confirm that, over time, as this market matures, the fees on GBTC will come down.”
Michael Sonnenshein
For comparison, Vanguard has waived fees for investors until March 2025, while BlackRock charges a mere 0.12%. Sonnenshein also mentioned Grayscale’s plans to introduce a lower-fee version of its flagship product, the Grayscale Bitcoin Mini Trust, trading under the ticker “BTC.” However, no specific launch timeframe was provided.
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The Grayscale CEO’s comments follow the massive wave of outflows from GBTC, which are attributed in part to the bankruptcy of crypto giant FTX, a major holder of GBTC shares. According to data from CoinShares, GBTC saw more than $12 billion in outflows since the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs earlier in January.
Meanwhile, Grayscale is still awaiting approval from the SEC for its Bitcoin Mini Trust ETF. In addition, Grayscale is seeking SEC approval to convert its Ethereum Trust into an ETF, as it aims to expand its offerings beyond Bitcoin.
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