- The CEO highlights the trust’s diverse investment base and unparalleled track record.
- The 1.5% fee is notable since its rivals in the same business often charge lower rates.
Michael Sonnenshein, CEO of Grayscale Investments, defends the market-leading 1.5% fee of the Grayscale Bitcoin Trust ETF (GBTC) despite concerns.
Even though the U.S. SEC recently approved many Spot Bitcoin ETFs, Sonnenshein boldly claims that the majority of them will fail, casting doubt on their dedication to the asset class in the long run. In this context, the chief executive officer of Grayscale explains the high charge and highlights the trust’s diverse investment base and unparalleled track record.
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With an enormous $25 billion in assets under management, Grayscale’s Bitcoin Trust ETF has surpassed all others to become the biggest in the world. The 1.5% fee that Grayscale charges is notable since its rivals in the same business often charge lower rates, ranging from 0.2% to 0.4%.
At the same time, CEO Michael Sonnenshein defends the premium charge by pointing to the trust’s stellar 10-year performance, the abundance of market liquidity, and Grayscale’s expertise in the cryptocurrency industry.
According to Sonnenshein, who spoke to CNBC during an interview at the World Economic Forum in Davos, other ETF issuers’ lower costs show that they don’t have a track record and are only trying to entice investors with fee concessions.
Aside from highlighting that Grayscale’s charge represents investor goals including liquidity, track record, and the issuer’s competence, he also doubts the dedication of these rivals to the asset class.
Data from the Grayscale Bitcoin Trust (GBTC) shows a large outflow, despite Grayscale’s claims. On January 18 alone, there was a massive net outflow of $579.6 million, adding up to a total of $2.2 billion over the last week, as reported by BitMEX Research.
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