Analysis: Despite asset decline, Grayscale's ETF fee income is still nearly 5 times that of BlackRock

PANews reported on October 2 that according to CoinDesk, although the assets under management of Grayscale Bitcoin Trust Fund (GBTC) decreased by 50% due to capital outflows, its fee income is still significantly higher than that of competitors. GBTC currently has an expense ratio of 1.50%, which is much higher than the 0.25% of BlackRock's iShares Bitcoin Trust (IBIT), giving Grayscale annual revenue of about $205 million, five times that of IBIT ($42.5 million). Although the latter has larger assets under management.

GBTC once had an asset management scale of US$29 billion in January this year, but with the withdrawal of funds, it has now dropped to US$13.65 billion, holding approximately 220,000 Bitcoins. While investors seek products with lower expense ratios, Grayscale's early advantage has allowed it to maintain strong cash flow. By comparison, IBIT has $17 billion in assets under management and holds 366,000 bitcoins.