2024-02-07 05:10:28 ET
Summary
- Grayscale Bitcoin Trust has converted into an ETF, eliminating the previous discount and maintaining a high management fee.
- Outflows from GBTC have been offset by inflows into new Bitcoin ETFs, indicating a shift in investor preference.
- Asset managers are becoming more interested in digital assets, with increased exposure and a focus on Bitcoin and Ethereum rather than altcoins.
My last update on the Grayscale Bitcoin Trust ( GBTC ) dates back to December 2023 , shortly before its conversion into an ETF. Something I've argued could happen from back when it traded at a 40% discount near the end of 22' Currently, there is no discount to speak of and GBTC has been turned into an ETF. Initially, I bought the Grayscale fund to capture the monster discount and get my Bitcoin exposure simultaneously. Unfortunately, Grayscale has chosen to keep its management fee very high. I've covered the various Bitcoin ETFs in more depth here . Here is the key table from said article:
ETF sponsor | ETF name | Ticker | Fees | Premium to nav (snapshot in time) | Digital Asset Custodian |
Grayscale Investments | Grayscale Bitcoin Trust | GBTC | 1.50% | 0.12% | Coinbase Custody Trust Company, LLC |
Bitwise Investment Advisers | Bitwise Bitcoin ETF | BITB | 0.20%, waived on first $1bn of assets for 6mo | 0.38% | Coinbase Custody Trust Co., LLC |
BlackRock iShares | iShares Bitcoin Trust | IBIT | 0.25%, cut to 0.12% on the first $5bn in assets for 1 year | 0.16% | s Coinbase Custody Trust Company, LLC |
Valkyrie Digital Assets | Valkyrie Bitcoin Fund | BRRR | 0.2%, all fees waived for the first 3 months | 0.49% | Coinbase initially (appears to suggest it may diversify providers) |
21Shares, sub-advised by ARK | ARK 21Shares Bitcoin ETF | ARKB | 0.21%, fees waived on first $1bn in assets (or for first 6mo of trading if it doesn't reach $1bn by then) | 0.19% | Coinbase |
Invesco Capital Management | Invesco Galaxy Bitcoin ETF | BTCO | 0.6%, waived on first $5bn of assets for 6mo | 0.34% | Coinbase Custody Trust |
VanEck Digital Assets | VanEck Bitcoin Trust | HODL | 0.25% | 0.17% | Gemini Trust Company is the custodian, but they expect to sign an agreement with Coinbase |
WisdomTree Digital Commodity Services | WisdomTree Bitcoin Fund | BTCW | 0.3%, waived for the first $1bn for 6mo | 0.24% | Coinbase |
FD Funds Management | Fidelity Wise Origin Bitcoin Fund | FBTC | 0.25%, waived through July 31 | -0.04% | Fidelity |
Franklin Holdings | Franklin Bitcoin ETF | EZBC | 0.29% | 0.12% | Coinbase |
Read the full article on Seeking Alpha
For further details see:
Rethinking Bitcoin Investments, Moving Beyond The Grayscale ETF (Rating Downgrade)