The high costs associated with Grayscale’s Bitcoin ETF have caused it to lose money, although those fees are expected to go down in the future.
Grayscale, the biggest digital currency manager in the world, has noticed a potential easing of outflows from its flagship ETF.
The CEO, Michael Sonnenshein, made the claim on a Reuters podcast that the turmoil brought on by the disposal of assets from insolvent firms like FTX had subsided.
Once the U.S. Securities and Exchange Commission (SEC) approved spot bitcoin ETFs, investors started pulling their money out of Grayscale’s GBTC, a trust that had been running for a while.
This change probably occurred because investors redirected their capital to newly authorized ETFs that provided the same level of exposure at perhaps cheaper fees.
The comparatively high fees compared to younger rivals have been a contributing reason to GBTC’s outflows.
The fund’s costs “are likely to diminish over time,” according to Sonnenshein’s hopeful statement last month, so there’s hope for the future.
However, the daily outflow rates have dropped from $600 million in March to $303 million and $155 million on consecutive days this week, according to the latest numbers from BitMEX Research. Despite this, GBTC did see substantial outflows totaling $15 billion over the previous three months.
With the industry gearing up for Benzinga’s Future of Digital Assets conference on November 19, this story on digital asset management and ETFs is more pertinent than ever.
This conference is going to cover a lot of ground when it comes to digital assets, including how investment vehicles like ETFs have changed over the years.
Session highlights include predictions from industry heavyweights like Sonnenshein, who will provide participants with an in-depth analysis of the present and future of investing in digital assets.
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