TL; DR
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The other 10 Bitcoin ETFs on the market have fees ranging from 0.19% to 0.39%, while Grayscale’s is a hefty 1.5%.
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It appears that Grayscale ran the numbers and figured that most of their shareholders would not want to sell and accept the 15-20% tax burden.
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Although the Grayscale ETF has lost almost $4 billion since launch – which is more than its two largest competitors (BlackRock and Fidelity) have combined – the fund currently still has more than $21 billion in investor funds. So there could be more selling pressure on BTC…
Full story
Remember when we recently talked about how the Grayscale Bitcoin ETF crashed the crypto market?
In fact, this was because they refused to lower their management fees to compete with the other ETF offerings, and investors sold out by the billions.
For context, the other 10 Bitcoin ETFs on the market have fees ranging from 0.19% to 0.39%, while Grayscale’s is a hefty 1.5%.
Which begs the question:
If everyone is getting out of their fund, why wouldn’t they just cut their costs?
Good…
It appears that Grayscale ran the numbers and figured that most of their shareholders would not want to sell and accept the 15-20% tax burden.
And they were (mostly) right!
Even though the Grayscale ETF has lost nearly $4 billion since launch – which is more than its two largest competitors (BlackRock and Fidelity) have combined – the fund currently still has more than $21 billion in investor funds.
Unfortunately, this means there is still a lot more to sell, which could lead to persistently low crypto prices in the coming week(s).
(This too shall pass 🧘).