Grayscale CEO Michael Sonnenshein has shed light on when his company plans to lower fees for the Grayscale Bitcoin Trust (GBTC).
When Fees Will Drop
Sonnenshein says GBTC fees will only go down once “Spot Bitcoin ETFs start to mature.” Spot Bitcoin ETFs are funds that track the price of Bitcoin, and GBTC currently has the highest fees among them at 1.5%.
Why Fees Are High Now
Despite the high fees, Sonnenshein is not worried. He believes that GBTC has the most outflows among its competitors because it is the first-mover in the market. He expects the market to consolidate over time, and investors will shift their attention to a few key Spot Bitcoin ETFs.
Grayscale’s Spot Bitcoin ETF Outflows
GBTC has been experiencing significant outflows, with over $15 billion leaving the fund since it converted to a Spot Bitcoin ETF. This has negatively impacted the price of Bitcoin.
Grayscale’s BTC Holdings
Despite the outflows, Grayscale still holds the most Bitcoin among all Spot Bitcoin ETF issuers. This is because it had a first-mover advantage in the market.
