Grayscale CEO Michael Sonnhenshein has promised to lower the management fee of the company’s spot Bitcoin ETF, whose above-average cost has led to overwhelming outflows in recent months.
- In an interview with CNBC on Monday, the executive promised that the fee will drop over time as the crypto ETF market matures.
- “I’ll happily confirm that, over time, as this market matures, the fees on GBTC will come down,” he said.
- Upon converting into an ETF on January 11, the fund dropped its management fee from 2% to 1.5%, in line with previous promises to investors.
- However, numerous identical spot Bitcoin ETF products launched on the same day, including from BlackRock and Fidelity, included fees of less than 0.5%.
- At the time, Sonnhenshein justified Grayscale’s uniquely high fee due to its existing liquidity and track record compared to its newborn competitors.
- On Monday, however, the CEO claimed that reducing its fee over time was par for the course for fund providers, which generally start with higher fees when their products are “earlier in their lifecycle.”
-
“As those markets mature, and as those funds grow, those fees tend to come down, and we expect the same to be true of GBTC,” he said.
- Since starting as an ETF, Grayscale hasn’t experienced a single trading day of net inflows. On the contrary, investors have sold over $12.4 billion out of the fund as long-term GBTC holders cash out on their gains, and new market entrants deploy their capital toward cheaper funds.
- For example, BlackRock’s iShares Bitcoin Trust (IBIT) has absorbed $12.9 billion of inflows over the same time period.
-
“We’re kind of at the end of that first inning now, where the pent-up demand for buying has hopefully been satisfied, the pent up demand for selling has also hopefully been satisfied,” Sonnenshein added.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://cryptopotato.com/grayscale-will-lower-fees-on-its-spot-bitcoin-etf-ceo-confirms/
- :has
- :where
- $UP
- 1
- 11
- 2%
- 4
- 9
- a
- added
- AI
- also
- an
- and
- ARE
- AS
- At
- background
- BE
- been
- Billion
- binance
- Binance Futures
- Bitcoin
- Bitcoin ETF
- Bitcoin Trust
- BlackRock
- border
- Buying
- capital
- Cash
- Cash Out
- ceo
- cheaper
- claimed
- CNBC
- color
- come
- Company’s
- compared
- competitors
- Confirm
- content
- contrary
- converting
- Cost
- course
- crypto
- crypto ETF
- day
- Demand
- deploy
- down
- Drop
- dropped
- due
- end
- enjoy
- entrants
- ETF
- example
- Exclusive
- executive
- existing
- expect
- experienced
- external
- fee
- Fees
- fidelity
- First
- For
- Free
- from
- fund
- funds
- Futures
- Gains
- GBTC
- generally
- Grayscale
- Grow
- Have
- he
- High
- higher
- holders
- Hopefully
- However
- HTML
- HTTPS
- identical
- in
- included
- Including
- inflows
- internal
- into
- Investors
- iShares
- ITS
- January
- jpg
- Kind
- launched
- Led
- less
- lifecycle
- like
- Line
- Liquidity
- long-term
- lower
- management
- Margin
- Market
- Markets
- mature
- matures
- Michael
- might
- Monday
- months
- net
- New
- New Market
- None
- now
- numerous
- of
- off
- offer
- on
- out
- outflows
- over
- overwhelming
- period
- plato
- Plato Data Intelligence
- PlatoData
- previous
- Products
- promised
- promises
- providers
- Reading
- receive
- recent
- record
- reducing
- register
- Said
- same
- satisfied
- Selling
- Share
- single
- sold
- solid
- Sponsored
- Spot
- Spot Bitcoin Etf
- start
- Starting
- tend
- than
- that
- The
- their
- this
- those
- time
- to
- toward
- track
- track record
- Trading
- true
- Trust
- uniquely
- was
- we
- when
- which
- whose
- will
- with
- Your
- zephyrnet
More from CryptoPotato
The US Should do The Opposite of China on Crypto: a16z Partner
Source Node: 1091347
Time Stamp: Sep 30, 2021
Glassnode: Bitcoin Back in Accumulation Mode But Big Move Ahead
Source Node: 975845
Time Stamp: Jul 13, 2021
Multiple Binance Executives Resign Amid CZ’s Handling Of DOJ Probe: Report
Source Node: 2161016
Time Stamp: Jul 6, 2023
Bitcoin Soars Above $20K, Recording 12-Day High (Market Watch)
Source Node: 1696745
Time Stamp: Sep 27, 2022
Apple and Amazon Q2 Earning Reports Incoming: Can This Impact Crypto?
Source Node: 1597139
Time Stamp: Jul 27, 2022
Grayscale CEO Will Consider Massive Share Buyback if SEC Lawsuit Fails
Source Node: 1777183
Time Stamp: Dec 19, 2022
Wintermute OTC Trading Volume Records 400% Growth in 2023: Report
Source Node: 2440419
Time Stamp: Jan 14, 2024
Billionaire Paul Tudor Jones: Bitcoin and Ethereum Prices Could Rise Amid Inflation
Source Node: 1721901
Time Stamp: Oct 11, 2022
EY Taps Polygon Network to Improve Enterprise Clients’ Experience
Source Node: 1081166
Time Stamp: Sep 18, 2021
Switzerland Plans to Freeze Russian Cryptocurrency Assets (Report)
Source Node: 1621087
Time Stamp: Mar 5, 2022
Thailand Could Shut Down Facebook (Meta) Over Crypto Scam Allegations
Source Node: 2228771
Time Stamp: Aug 22, 2023