Grayscale’s High ETF Fee Keeps the Cash Flowing In Even as Investors Withdraw
Summary
Grayscale's Bitcoin ETF is generating significantly higher income than competitors, earning about $205 million annually with $14 billion in assets under management. This income is five times that of BlackRock iShares Bitcoin Trust, which earns $42.5 million with $17 billion in AUM. The income disparity is due to Grayscale's higher expense ratio of 1.5%, compared to lower ratios like Bitwise's 0.20%. Despite investor withdrawals seeking lower fees, Grayscale's early market entry maintains cash flow. Its AUM decreased from $29 billion to $13.65 billion, holding approximately 220,000 bitcoin. BlackRock holds 366,000 bitcoin with a NAV per share of $35.13.
