- ORIGINAL NEWS
Grayscale CEO says fees on its bitcoin ETF will drop over time after outflows hit $12 billion
- SUMMARY
Grayscale, a significant player in the crypto market, has faced criticism for its high fees on its flagship Bitcoin Exchange-Traded Fund (ETF), GBTC.
Despite initially defending these costs, Grayscale’s CEO, Michael Sonnenshein, has recently announced plans to reduce them over time.
The move comes as GBTC has experienced significant outflows totaling over $12 billion since its conversion into an ETF.
Investors have expressed dissatisfaction with the higher fees, leading Sonnenshein to acknowledge the need for adjustment.
He believes that as the crypto ETF market matures, fees will naturally decrease.
In addition to fee reductions, Grayscale is also exploring alternative ways to provide more affordable access to its Bitcoin ETF.
This includes the introduction of a “mini” version of GBTC, which will have a lower management fee.
This ETF will be spun out from GBTC and seeded with a portion of its underlying Bitcoin assets.
Sonnenshein emphasized that GBTC continues to trade with high liquidity and a diverse shareholder base.
He anticipates a shift in investor focus toward Grayscale’s other crypto investment products as the market matures.
The company is currently seeking SEC approval to convert its Ethereum Trust into an ETF.
Overall, Grayscale’s decision to reduce fees on its Bitcoin ETF is a response to market demand and a recognition of the need for affordability in the crypto investment space.
The company is also working on innovative ways to provide investors with more cost-effective access to digital assets.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Grayscale’s CEO Michael Sonnenshein told CNBC on Monday that fees on its flagship bitcoin ETF will come down over time.”
“Sonnenshein said the reason other ETFs have lower fees is that the products “don’t have a track record” and the issuers are trying to attract investors with fee incentives.”
Negative
“Grayscale’s GBTC has logged outflows of more than $12 billion since it was converted into an ETF in early January, due in no small part to its higher-than-average fees.”
“CoinShares’ data shows that GBTC recorded its biggest single daily outflow on Monday, with withdrawals totalling $643 million.”