Grayscale GBTC Still Leads in Revenue Despite Fierce Competition

Grayscale’s Bitcoin Trust ETF (GBTC) continues to dominate in revenue generation, outperforming all other spot Bitcoin exchange-traded funds (ETFs) combined — despite charging some of the highest fees in the industry. According to Nate Geraci, president of ETF Store, GBTC is “making more $$$ than all of the other ETFs combined… and it’s not even close,” he stated on X. GBTC Leads Bitcoin ETFs Based on Coinglass data , GBTC collects about $268.5 million annually from its 1.5% expense ratio on $17.9 billion in assets under management (AUM). In comparison, all other U.S. Bitcoin ETFs together generate approximately $211.8 million in annual revenue from a much larger $89 billion AUM pool. Even though GBTC has lost more than half of its Bitcoin holdings since spot Bitcoin ETFs launched in January 2024, its high fee structure keeps its revenue far ahead. Meanwhile, newer ETFs like BlackRock’s IBIT, with a modest 0.25% fee on a much larger $56 billion AUM , only bring in around $137 million annually. First-Mover Advantage and Structural Shifts Grayscale’s dominance can largely be attributed to its early market entry and strong brand recognition. GBTC pioneered regulated Bitcoin investment in 2013 as a private trust before transitioning to an ETF in January 2024 after a landmark legal victory against the SEC. When GBTC converted from a closed-end trust to an open-ended ETF, it allowed for easier share redemptions and better tax efficiency, according to SEC guidelines. However, Grayscale has maintained its hefty 1.5% management fee — much higher than most rivals. In response to mounting competitive pressure, Grayscale introduced the Bitcoin Mini Trust (BTC) in March 2025, offering investors a lower-cost alternative to GBTC. Despite recent large outflows, including a record $618 million withdrawal on March 19, 2024, the fund’s revenue engine remains strong. Analysts such as Bloomberg Intelligence’s James Seyffart have noted that while GBTC’s outflows have been significant, they are expected to slow over time. Grayscale CEO Michael Sonnenshein has acknowledged that ETF fees could decline as the market matures, but for now, GBTC’s profitability highlights how critical fee structures and early adoption remain in the competitive ETF landscape. As competition among Bitcoin ETFs intensifies, it remains to be seen whether Grayscale will adjust its fee model further to maintain its leading position. The post Grayscale GBTC Still Leads in Revenue Despite Fierce Competition appeared first on TheCoinrise.com .

Source: The Coin Rise