Grayscale to Lower Bitcoin ETF Fees Amid Massive Outflows

Outflows Cross $12 Billion

Grayscale’s Spot Bitcoin ETF (GBTC) has been facing significant outflows recently, totaling over $12 billion since trading began. The company’s CEO, Michael Sonnenshein, has acknowledged this and announced that fees for the ETF will be reduced.

Grayscale’s High Fees

Grayscale’s GBTC has the highest ETF fee in the market, charging investors around 1.5%. This has been a major factor in the outflows, as investors have been opting for ETFs with lower fees.

Change of Heart

Despite previously defending the high fees, Sonnenshein has now announced that they will be lowered. This shift in position suggests that Grayscale is recognizing the market demand for more affordable ETF options.

Attracting Investors

By reducing fees, Grayscale aims to attract more investors and cater to the needs of existing shareholders. The combination of the company’s reputation, track record, and lower fees could help mitigate outflows and potentially spark inflows.