tl;dr
Grayscale's Bitcoin Trust ETF (GBTC) generates more annual revenue (~$268.5 million) than all other U.S. spot Bitcoin ETFs combined (~$211.8 million), despite charging fees up to seven times higher (1.5% vs. ~0.25%). GBTC manages $17.9 billion in assets, less than competitors like BlackRock’s IBIT (...
Grayscale's Bitcoin Trust ETF (GBTC) generates approximately $268.5 million in annual revenue, surpassing the combined revenue of all other U.S. spot Bitcoin ETFs, which total about $211.8 million. This is despite GBTC charging fees of 1.5%, which is up to seven times higher than competing ETFs that average around 0.25%.
With $17.9 billion in assets under management, GBTC manages fewer assets compared to competitors such as BlackRock’s IBIT, which holds $56 billion. However, GBTC's higher fees allow it to maintain revenue dominance. Since spot Bitcoin ETFs launched in January 2024, GBTC has lost over half of its holdings, highlighting shifting investor preferences.
In response to increased competition and market dynamics, Grayscale introduced a lower-cost Bitcoin Mini Trust in March 2025, aiming to offer a more affordable option while broadening its product offerings. GBTC’s conversion from a private trust to an ETF in 2024 followed a legal victory, enabling improved structural benefits like open-ended share redemption, lower transaction costs, and greater tax efficiency compared to traditional trusts.
Despite its strong revenue performance, GBTC has faced massive outflows, including a record single-day outflow of $618 million in March 2024. At that withdrawal pace, there was concern the fund might deplete its Bitcoin holdings by July 2024; however, experts anticipate that outflows will slow down as the market adjusts.
GBTC’s pioneering role in regulated Bitcoin investment dates back to 2013. The fund’s fee structure, first-mover advantage, and brand recognition help sustain its revenue even as newer ETFs capture more assets. This evolving landscape underscores the impact of fee models on fund economics in the rapidly maturing Bitcoin investment space.