Fees are a boon to the claimant and a noose to the payer.
News promotion: Two Grayscale Crypto Trusts, their Bitcoin (GBTC) and Ethereum (ETHE) boxes, charge shareholders 2% and 2.5% annually.
- Investors have collectively paid an estimated $1.2 billion to GBTC and $387 million to ETHE over the life of both products, according to Morningstar Research.
- Data assumes current annual fees since GBTC was launched three years before ETHE was launched in 2017.
Featured: See how these fees rose as a percentage of assets at the start of the latest crypto bull market in 2020.
yes, but: If Grayscale were able to convert the trust into a spot Bitcoin ETF, fees would be reduced, but that seems unlikely in the short term.
- please remember. Grayscale is suing the Securities and Exchange Commission for its decision to deny its application.
Conclusion: This stable and predictable revenue stream gives Grayscale a stronger footing than its sister units under parent company Digital Currency Group.