The Grayscale Bitcoin ETF Is the Crypto Market’s ‘Problem Child’ Right Now…Here’s Why.

TL;DR

• The other 10 Bitcoin ETFs on the market have fees ranging from 0.19% to 0.39%, while Grayscale’s sits at a weighty 1.5%

• It looks like Grayscale ran the numbers and figured most of their share holders wouldn’t want to sell and take the 15-20% tax hit.

• While the Grayscale ETF has shed close to $4B since its launch — which is more than its two biggest competitors (BlackRock and Fidelity) hold combined — the fund still holds a cool $21B of investor funds right now. So more sell pressure could be coming to BTC…

Full Story

Remember the other day when we talked about how the Grayscale Bitcoin ETF was crashing the crypto market?

Basically it was because they refused to lower their management fees to compete with the other ETF offerings, and investors were selling out by the billions.

For context, the other 10 Bitcoin ETFs on the market have fees ranging from 0.19% to 0.39%, while Grayscale’s sits at a weighty 1.5%

Which begs the question:

If everyone is bailing from their fund, why wouldn’t they just lower their fees?

Well…

It looks like Grayscale ran the numbers and figured most of their share holders wouldn’t want to sell and take the 15-20% tax hit.

And they were (mostly) right!

Cause, while the Grayscale ETF has shed close to $4B since its launch — which is more than its two biggest competitors (BlackRock and Fidelity) hold combined — the fund still holds a cool $21B of investor funds right now.

Unfortunately, this means there’s still plenty more to sell, which could lead to continued depressed crypto prices over the coming week(s).

(This too shall pass 🧘).