In a recent interview, Michael Sonnenshein, the CEO of Grayscale Investments, announced that as the market matures, the fees on their Grayscale Bitcoin Trust (GBTC) will decrease. This comes in light of significant outflows from GBTC, totaling over $12 billion since its conversion to an ETF earlier this year. The high fees associated with GBTC have been a major factor in these outflows, with market commentators attributing the selloff to the bankruptcy of crypto giant FTX, a major holder of GBTC.
Sonnenshein acknowledged the anticipated outflows from GBTC, noting that investors have been looking to capitalize on gains, unwind positions related to bankruptcies, and engage in arbitrage. The company is now focusing on introducing a new, less costly way for investors to access their bitcoin ETF, the Grayscale Bitcoin Mini Trust, which is set to have a lower fee than GBTC. The new BTC ETF would allow existing holders of GBTC to benefit from a lower total blended fee while maintaining exposure to bitcoin.
Grayscale Investments is also awaiting approval from the U.S. Securities and Exchange Commission for its Bitcoin Mini Trust ETF, as well as working to convert its Ethereum Trust into an ETF. Sonnenshein emphasized the company’s commitment to providing investors with access to a diverse range of crypto investment products beyond just bitcoin, including those tracking the prices of other cryptocurrencies like ether and solana.