GBTC fees will fall as Bitcoin ETFs ‘start to mature’ – Grayscale CEO

Greyscale's flagship Bitcoin (BTC) exchange-traded fund (ETF) will drop its fees, the highest among all U.S.-based Bitcoin ETFs, but only once the products “start to mature,” according to CEO Michael Sonnenschein.

“The markets were very excited,” Sonnenshein said in an April 10 on-stage interview at Canaccord Genuity's Digital Assets Symposium when commodities or unique exposure products — his own Grayscale Bitcoin Trust (GBTC) — were first introduced and given access to investors. properties for the first time.

“We are still very much at that stage for Bitcoin,” he said.

Over time, Sonnenschein said, the products will “start to mature,” and the market will strengthen as investors allocate their money to just a few products.

“That means fees will go down over time. We'll keep fees down on GBTC, and that means we're well on the way to the end of that first wave of adoption.”

Typically, new products — like the recently launched Bitcoin ETFs — make their way into wealth management platforms, Sonnenschein said.

“Those things haven't really started happening yet,” he added. “We have not yet reached the next level of adoption and growth in the United States.”

GBTC in 2010 Launched in 2015 and converted into an ETF in January, Grayscale — along with the launch of nine Bitcoin ETFs — forced it to review its rejected GBTC conversion bid after winning a lawsuit at the Securities and Exchange Commission.

GBTC has the highest management fees of all US Bitcoin ETFs – 1.5% per year compared to an average of 0.30% for its competitors.

According to Farside Investors, net outflows of $16.1 billion were the highest of all competitors since mid-January.

After the conversion, Sonnenshein GBTC emerged as a “capital markets and risk transfer tool” for those seeking exposure to Bitcoin.

Related: Bitcoin ETF Movement to Remain Strong Until Halving: Santiment

“GBTC has a very large outstanding share offering, a lot of daily liquidity, a very tight spread,” he added. “We've seen a lot of engagement from those types of investors.”

Despite Grayscale's early “100% market share” for Bitcoin ETFs in the US, Sonnenshein knew that other issuers coming to the market would be “positive for the ecosystem.”

“We believe a rising tide will lift all boats when it comes to adoption, maturity and access to the asset class.”

“We've seen some of the world's biggest asset managers get involved in the space,” Sonnenschein said. I think this re-emphasizes the property's durability and investor interest.

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