Driven by its higher-than-average fees, Grayscale’s spot Bitcoin ETF has seen $12 billion in outflows.
Since trading started on January 11, Grayscale Bitcoin Trust (GBTC) has yet to record a daily net inflow but has consistently experienced outflows. This has been mainly driven by its high management fee compared to other spot Bitcoin ETFs in the US.
While its peers have seen inflows during some trading days, GBTC, in contrast, has seen a steady sell-off, hitting a cumulative $12 billion in outflows to date.
GBTC to Lower Fees
In a recent interview with CNBC, Grayscale’s CEO, Michael Sonnenshein, stated that fees on GBTC will decrease over time.
Specifically, he noted that the asset manager expects to reduce the fees on its spot Bitcoin ETF in the coming months as the ETF market grows.
“I’ll happily confirm that, over time, as this market matures, the fees on GBTC will come down,” he told CNBC.
The latest decision is a shift from the company’s previous stance, which defended its decision to charge higher-than-average fees on its spot Bitcoin ETF.
In a previous interview with CNBC, Sonnenshein defended the firm’s high fees, saying that they were justified by GBTC’s liquidity and track record of operating successfully. At the time, he noted that their competitors charge lower because their ETFs don’t have a track record and that their issuers are only trying to lure investors with fee incentives.
While Grayscale’s ETF charges a 1.5% management fee, most approved ETFs have lower fees, between 0.2% and 0.4%.
GBTC Records Highest Daily Outflow
Meanwhile, the latest development comes as GBTC recorded its highest daily outflow since January 11. According to SoSoValue data, GBTC saw a single-day net outflow of $642 million on March 18.
Commenting on this development, Sonnenshein said:
“Of course, we anticipated having outflows. Investors have been wanting to either take gains on their portfolio, or arbitragers coming out of the fund, or people unwinding positions that were part of bankruptcies through forced liquidation.”
