spot_imgspot_imgspot_img

Grayscale CEO Sonnenshein Defends Fee for Spot Bitcoin ETF

  • Sonnenshein stands firm against skeptics by defending the market’s highest fee of 1.5% for Grayscale Bitcoin Trust ETF (GBTC).
  • Grayscale’s Bitcoin Trust ETF has become the world’s largest with $25 billion in assets under management.
  • While Grayscale claims superiority in the ETF fee space, recent data indicates a significant outflow from Grayscale Bitcoin Trust (GBTC).

Grayscale Investments CEO Michael Sonnenshein continues to defend the high fee offered for the Grayscale Bitcoin ETF.

Grayscale CEO Clears Pay Doubts

Grayscale

Grayscale Investments CEO Michael Sonnenshein continues to defend the high fee offered for Grayscale Bitcoin Trust ETF (GBTC), standing firm against skeptics. Especially with the recent approval of several Spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), Sonnenshein boldly claims that many won’t survive, questioning their long-term commitment to the asset class.

Meanwhile, against this backdrop, the top executive of Grayscale sheds light on the reasons behind the high fee, emphasizing the unmatched 10-year history of trust, diverse investor base, and broad market liquidity. Grayscale’s Bitcoin Trust ETF has become the world’s largest with $25 billion in assets under management. Particularly noteworthy is Grayscale’s 1.5% fee in an industry where competitors typically prefer lower fees ranging from 0.2% to 0.4%.

In the meantime, the company’s CEO Michael Sonnenshein justifies this premium fee with factors such as the impressive 10-year history of trust, broad market liquidity, and Grayscale’s focus as a crypto specialist. Sonnenshein, in an interview with CNBC at the World Economic Forum in Davos, argues that other ETF issuers with lower fees are displaying a deficiency and using fee incentives to attract investors.

Additionally, by questioning the commitment of these competitors to the asset class, he highlights that Grayscale’s fee reflects investor priorities such as liquidity, historical performance, and the issuer’s expertise.

Increasing GBTC Outflows Amid Changing Dynamics

While Grayscale claims superiority in the ETF fee space, recent data indicates a significant outflow from Grayscale Bitcoin Trust (GBTC). According to BitMEX Research, a surprising net outflow of $579.6 million was recorded on January 18 alone, and the total net outflow for the past week reached $2.2 billion.

Especially according to market experts, this massive outflow from GBTC is attributed to the launch of spot Bitcoin ETFs and forces Grayscale to liquidate a significant portion of its Bitcoin assets to meet the outflow. In response to concerns about Grayscale’s impact on the market, crypto analyst Scott Melker explains that the asset manager is not actively selling in the market.

Instead, he suggests that the sale of GBTC is due to individuals liquidating their assets, leading Grayscale to sell an equivalent amount of Bitcoin in response. Grayscale is closely monitored by the industry during this transitional period to understand the lasting impact of recent SEC ETF approvals and Grayscale’s strategic fee position.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news

spot_imgspot_imgspot_imgspot_img

Latest News

Bitcoin Faces Potential Downturn Amid Economic Challenges, Warns Analyst

This article delves into the potential economic headwinds for Bitcoin in 2024, as analysts express concerns over inflation and growth slowdowns impacting the cryptocurrency market.

Bitcoin Set for Major Correction Post-Halving, Eyes $58,000 Peak: Analyst Michael van de Poppe Predicts

With the halving event on the horizon, Bitcoin's journey to a new peak is marked by bullish predictions and anticipated corrections, painting a volatile yet promising future for the flagship cryptocurrency.

Can Dogecoin Price Exceed $1? Massive DOGE Forecast from Renowned Analyst!

Dogecoin price experienced approximately a 2% decline in the last 24 hours: Will there be a rise by April? Analyst Martinez revealed!

Fed Agenda in the Bitcoin Market: According to Bianco, Interest Rates Won’t Be Lowered Before This Date!

What will the Federal Reserve do in its next move? According to Bianco's research, there may not be an interest rate cut before September!

Bitcoin and Altcoin Investment Products Witness $5.7 Billion Inflow!

Bitcoin and cryptocurrency investment products recorded a massive influx of funds, with increasing demand for Spot Bitcoin ETFs leading the way!
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Ethereum Breaks $3K as Rally Continues: What’s Next for ETH?

This article dives into Ethereum's recent surge past $3,000, analyzing the technical indicators and market dynamics driving its ascent and future prospects.

Will Bitcoin Rise To $50,000? Current BTC Analysis

Bitcoin is trading at $48,400 and may rise to $50,777 if it closes above $48,200. However, caution is advised in the range of $50,777 - $52,000. Corrections are common in the crypto market, so careful consideration is necessary before spot investments.

Where is the Solana Rise Target? Current SOL Analysis!

Solana is trading near the $108 resistance on the 8-hour chart, with a potential target of $111.84 if it surpasses this level. However, caution is advised in the $111.84 - $117.20 resistance range on the 6-hour timeframe.

Medium Term Ethereum Technical Analysis! What Awaits Its Investors?

When examining the medium-term technical chart of Ethereum, strong buying pressure is observed, pushing the price up from the $2139 support to the $2350 region. However, for the price to sustain its upward movement, it needs to surpass the $2407 resistance.

Can Bitcoin Fall To $35,000 Levels? Current BTC Analysis

When examining Bitcoin's 5-day technical chart, the analysis from January 18 is ongoing, indicating a continued downward movement from the $48,189 level. Bitcoin needs to close 5-day candles above the $44,200 resistance to gain momentum for an upward trend. 
Celal Mutlu
Celal Mutluhttps://coinotag.com/
Celal Mutlu is a young Satoshi reflection at the age of 21. His favorite characters are CZ and Vitalik, and he has a great sense of humor. Celal is a keen follower of developments in the world of cryptocurrency and keeps up with the latest news and trends.
spot_imgspot_imgspot_imgspot_img

Bitcoin Faces Potential Downturn Amid Economic Challenges, Warns Analyst

This article delves into the potential economic headwinds for Bitcoin in 2024, as analysts express concerns over inflation and growth slowdowns impacting the cryptocurrency market.

Bitcoin Set for Major Correction Post-Halving, Eyes $58,000 Peak: Analyst Michael van de Poppe Predicts

With the halving event on the horizon, Bitcoin's journey to a new peak is marked by bullish predictions and anticipated corrections, painting a volatile yet promising future for the flagship cryptocurrency.

Can Dogecoin Price Exceed $1? Massive DOGE Forecast from Renowned Analyst!

Dogecoin price experienced approximately a 2% decline in the last 24 hours: Will there be a rise by April? Analyst Martinez revealed!