Why Grayscale’s Bitcoin Trust still dominates ETF revenue in 2025
Grayscale Bitcoin Trust (GBTC), established in 2013, transitioned to a spot Bitcoin ETF on January 11, 2024, after a legal victory against the SEC. GBTC generated $268.5 million in annual revenue, surpassing the combined revenue of all other US spot Bitcoin ETFs despite $18 billion in outflows since early 2024. Its 1.5% expense ratio, significantly higher than competitors like BlackRock’s iShares Bitcoin Trust (IBIT) at 0.25%, contributes to its revenue dominance. GBTC's substantial assets under management (AUM) and investor loyalty are bolstered by tax frictions that discourage selling. The launch of the Grayscale Bitcoin Mini Trust with a lower fee aims to retain cost-conscious investors but generates less revenue. Psychological factors, such as loss aversion and brand loyalty, further anchor investors to GBTC. Despite competition from lower-fee ETFs, GBTC's legacy and regulatory pedigree maintain its position in the market.
