Grayscale CEO Optimistic About Lowering GBTC Fees Despite Over $12 Billion in Outflows
Grayscale CEO Michael Sonnenshein remains optimistic about fee reductions for the Grayscale Bitcoin Trust ETF (GBTC) as outflows reach $12 billion. In an interview with CNBC, Sonnenshein addressed concerns over high fees associated with GBTC, expressing confidence in fee reductions as the crypto ETF market matures.
Concerns arose as outflows from Grayscale's Bitcoin investment product surpassed $12 billion since its conversion into an exchange-traded fund (ETF) in early January. This trend was attributed to higher fees compared to the market average.
"I’ll happily confirm that, over time, as this market matures, the fees on GBTC will come down," Sonnenshein remarked. Grayscale previously defended its higher-than-market-average charges.
BitMEX Research Reports Largest Single-Day Outflow From GBTC, With Net Withdrawals Reaching $643 Million
According to BitMEX Research, GBTC experienced its largest single-day outflow, with $643 million withdrawn on Monday. Data also shows no positive flow since the inception of the Bitcoin spot ETF in the United States on January 11.
In contrast, asset managers like BlackRock, Fidelity, Bitwise, and Ark Invest continue to witness notable positive inflows to their Bitcoin spot ETFs.
Market Analysts Attribute GBTC Sell-Off to FTX Bankruptcy Push
Market analysts cited by CNBC believe that the insolvency of FTX played a significant role in the sell-off of GBTC. FTX, a prominent holder of GBTC before filing for bankruptcy in 2022, held approximately 22 million shares as of October 2022.
Following ETF approval, the FTX bankruptcy estate sold most of its shares in Grayscale's Bitcoin ETF, temporarily affecting the price of Bitcoin.
Overall, the market anticipates fee reductions for GBTC amidst substantial outflows and external market factors.