Grayscale Nonetheless Tops All US Spot Bitcoin ETFs in Income

Grayscale’s Bitcoin Belief ETF (GBTC) generates extra income than all different spot Bitcoin exchange-traded funds mixed, regardless of charging charges which might be as much as seven instances greater than its rivals.

GBTC continues to be “making extra $$$ than the entire different ETFs mixed…” Nate Geraci, president of ETF Retailer, said on X on Sunday. “And it isn’t even shut.”

The fund generates roughly $268.5 million in annual income, with a 1.5% expense ratio utilized to $17.9 billion in belongings beneath administration, in response to Coinglass information.

All the opposite U.S.-Bitcoin ETFs proven by Geraci generate an implied annual income of a little bit over $211.8 million from a complete of $89 billion in belongings beneath administration.

GBTC’s income dominance persists regardless of dropping greater than half its holdings since spot Bitcoin ETFs went dwell in January 2024, revealing how payment buildings have formed the fund’s economics, no matter market share.

Apart from its first-mover benefit and model recognition, Grayscale’s management over GBTC’s administration permits it to cost a 1.5% payment.

For instance, BlackRock’s IBIT holds thrice extra belongings, at $56 billion, in comparison with GBTC’s $18 billion, however it generates solely about $137 million in income with its 0.25% payment.

In response, Grayscale launched its Bitcoin Mini Belief (BTC) in March 2025 primarily to supply a lower-cost different to GBTC’s payment, whereas additionally diversifying its product lineup amid intensifying competitors.

Lose some, win some

Grayscale’s Bitcoin Belief (GBTC) pioneered regulated Bitcoin funding in 2013 as a personal belief, earlier than providing an ETF in January of final yr, alongside a number of different ETF issuers.

All this rolled into place after Grayscale received a landmark case in opposition to the then-Gensler-led SEC to transform its belief to an ETF.

When a belief converts to an ETF, key features of its construction change.

From a closed-end kind, it turns into open-ended, permitting shares to be redeemed primarily based on demand.

As a result of their distribution and transaction prices are completely different and sometimes decrease, the expense ratios for ETFs have been “traditionally lower than these for corresponding mutual funds,” the SEC explains.

As such, ETFs “may be extra tax environment friendly” as a result of ETF shares are usually redeemable “in-kind,” the SEC notes.

In April final yr, Grayscale CEO Michael Sonnenshein claimed that the charges “will come down” because the ETF market matures.

The biggest single-day outflow for GBTC was recorded on March 19, 2024, totaling $618 million, in response to CoinGlass information.

At this tempo, it might run out of Bitcoin by July 8, although James Seyffart, ETF analysis analyst at Bloomberg Intelligence, beforehand instructed Decrypt that its outflows would “sluggish from right here.”

Edited by Sebastian Sinclair