Grayscale Investments CEO Michael Sonnenshein said the 1.5% management fee charged for GBTC — the highest of any spot Bitcoin ETF on the market — was justified due to “the company’s size, liquidity and track record.”
"As an investor, when choosing these products, fees are a consideration, asset managers, issuers are behind it, but they should also be considered," Sonnenshein said in an interview with Bloomberg TV in Davos on Wednesday. Scale, liquidity and track record.”
Since launching last week, several of the nine rival exchange-traded funds are offering incentives, such as zero fees, to compete for investors. Grayscale funds have seen about $1.2 billion in outflows since the trust converted to an ETF last week and received regulatory approval, according to data compiled by Bloomberg Intelligence so far. With the exception of GBTC, all other spot Bitcoin ETFs have had around $1.9 billion in net inflows.
VanEck’s spot Bitcoin ETF has the second-highest management fee of any new ETF, one-sixth that of GBTC at 0.25%. (Bloomberg)