- The marketing competition among spot Bitcoin ETF issuers has reached a new level with Grayscale highlighting its offering on various media platforms, including television and billboards.
- According to Eric Balchunas, a senior ETF analyst at Bloomberg, Grayscale has filled “30th St Station in Philly” and several media platforms with posters to promote its Bitcoin ETF.
- Despite significant outflows in Grayscale’s GBTC since the first trading day of its spot Bitcoin ETF, the asset management company is making critical moves to promote its ETF.
Although Grayscale’s spot Bitcoin ETF is experiencing major outflows, Grayscale is making critical moves to make its ETF stand out.
Grayscale Takes Action for Spot Bitcoin ETF
The marketing competition among spot Bitcoin ETF issuers has reached a new level with Grayscale highlighting its offering on various media platforms, including television and billboards. Eric Balchunas, a senior ETF analyst at Bloomberg, acknowledged the marketing strategies adopted by the investment asset management company Grayscale for its GBTC.
According to Balchunas’s recent post, Grayscale has filled “30th St Station in Philly” and several media platforms with posters to promote its Bitcoin ETF. According to Balchunas, this makes it quite challenging to ignore the buzz around Bitcoin ETFs. A user on X confirmed Balchunas’s post by stating that they had seen many GBTC ads at Atlanta Airport.
This highlights Grayscale’s effort to stay ahead in the spot Bitcoin ETF marketing game, and the reason for this advertising push is not far-fetched. Apart from the first trading day of Grayscale’s spot Bitcoin ETF, the asset management company experienced significant outflows in GBTC. Many individuals wanting to divest from GBTC holdings began liquidating their positions as soon as the US Securities and Exchange Commission (SEC) approved eleven spot Bitcoin ETF applications, including Grayscale’s.
As of the fifth trading day, Grayscale recorded almost a $580 million significant net outflow, but this time almost all Bitcoin ETFs were losing assets. This massive outflow brought the company’s GBTC outflows to approximately $2.2 billion. James Butterfill, the Head of Research at CoinShares, mentioned that GBTC only had a $1 billion outflow on the fifth day. To position itself better overall, Grayscale believes that spot Bitcoin ETF advertisements can make a difference.
High Fees in Spot Bitcoin ETF Products
Grayscale’s fees also contributed to massive outflows in GBTC. Compared to all other spot Bitcoin ETF issuers, Grayscale has the highest fee of 1.5%, and the company’s CEO, Michael Sonnenshein, defended the hefty fee against customer doubts.
Sonnenshein referred to the company’s impressive ten-year history, broad market liquidity, and Grayscale’s specialized focus as a crypto expert, questioning the long-term commitment of other Bitcoin ETF issuers to the asset class. Meanwhile, other issuers are also trying to solidify their positions in the market with high-profile advertisements. At the close of the sixth trading day, net fund inflows into spot Bitcoin ETFs stand at $33.1 million, providing evidence that advertisements are yielding results.
