Spot Bitcoin ETFs continue to surge, with Grayscale’s GBTC outperforming BlackRock’s spot Bitcoin ETF.
Grayscale’s GBTC holdings have seen aggressive outflows since becoming an ETF, with assets down 50%, Coindesk reported.
Despite these declines and outflows, Grayscale’s Bitcoin ETF continues to generate higher returns than its competitors, even as investors turn to lower-cost options.
At this point, GBTC is generating five times the income of BlackRock's Bitcoin ETF (IBIT).
According to the calculation, Grayscale Bitcoin Trust (GBTC), with assets under management (AUM) of approximately $14 billion, earns approximately $205 million per year.
By comparison, BlackRock’s IBIT, which manages $17 billion in assets, earns $42.5 million, meaning Grayscale earns about five times more than BlackRock.
This large income difference is due to GBTC’s higher fee rate of 1.5% compared to IBIT’s 0.25%. This difference also means that while investors have pulled funds out of GBTC in favor of ETFs with lower transaction rates, GBTC’s initial upside means cash flow is still flowing.
Finally, if we look at the transaction fees of ETFs, we see that the lowest among the five largest issuers is 0.20% for the Bitwise Bitcoin ETF (BITB).
This rate is 0.21% in Ark 21 Shares Bitcoin ETF (ARKB); 0.25% in BlackRock- IBIT and Fidelity Wise Origin Bitcoin Fund (FBTC). Gryascale's GBTC has the highest transaction fee at 1.5%.
*This is not investment advice.