The post Grayscale Bitcoin Trust (GBTC) Maintains Revenue Lead Despite Outflows and Competitive ETF Landscape appeared on BitcoinEthereumNews.com.

In a dramatic twist in the cryptocurrency landscape, Grayscale Bitcoin Trust (GBTC) showcases remarkable resilience, outpacing all spot Bitcoin ETFs in revenue generation. This performance persists even as GBTC experiences significant outflows, highlighting the complex interplay between investor loyalty and competitive pressures. “GBTC still making more [money] than all of the other ETFs combined… And it’s not even close,” remarked ETF Store president Nate Geraci, emphasizing its unique position. Grayscale Bitcoin Trust significantly outperforms all spot Bitcoin ETFs in revenue, driven by high fees and steadfast investor loyalty despite substantial outflows. Grayscale Bitcoin Trust: Revenue Resilience Amidst Competition Founded in 2013, the Grayscale Bitcoin Trust (GBTC) has transformed the way investors access Bitcoin, providing a regulated platform devoid of digital wallets and unregulated exchanges. Its journey reached a crucial inflection point on January 11, 2024, when it transitioned into a spot Bitcoin ETF after winning a significant legal battle against the SEC. Despite losing over half its holdings with $18 billion in outflows since early 2024, GBTC still generated an impressive $268.5 million in annual revenue, outshining the combined revenue of all other US spot Bitcoin ETFs, which amounted to $211.8 million. This paradox reveals the intricate dynamics of investor behavior, market forces, and the strategic maneuvers of Grayscale. The Competitive Landscape and GBTC’s Revenue Model GBTC’s financial structure shines through its substantial 1.5% expense ratio, significantly higher than competitors like BlackRock’s iShares Bitcoin Trust, which charges only 0.25%. This results in GBTC accruing $268.5 million annually from a total AUM of $17.9 billion, a feat not matched by its rivals. Nate Geraci’s comments underline a critical observation: though GBTC has experienced massive outflows averaging $89.9 million daily, its revenue remains robust, demonstrating the profound impact of high fees on a large asset base. This dynamic raises questions about sustainability…

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Filed under: News - @ May 2, 2025 11:22 pm