Grayscale Bitcoin Trust Outperforms Competitors Despite Asset Decline

According to PANews, despite a significant reduction in assets under management (AUM) due to outflows, Grayscale Bitcoin Trust (GBTC) continues to generate higher fee revenue compared to its competitors. GBTC's current fee rate stands at 1.50%, significantly higher than BlackRock's iShares Bitcoin Trust (IBIT), which charges a fee rate of 0.25%. This disparity results in Grayscale's annual revenue being approximately $205 million, five times that of IBIT's $42.5 million, despite IBIT managing a larger asset base. In January of this year, GBTC managed $29 billion in assets, but due to substantial outflows, this figure has now decreased to $13.65 billion, with the trust holding around 220,000 bitcoins. While investors are increasingly seeking products with lower fee rates, Grayscale's early market entry has allowed it to maintain a robust cash flow. In contrast, IBIT manages $17 billion in assets and holds 366,000 bitcoins.