Grayscale Bitcoin Trust (GBTC) continues to hold the leading position in revenue among Bitcoin spot ETFs in the U.S., despite significant capital outflows since early 2024. With a fee of 1.5%, GBTC generates superior revenue compared to its competitors, but is this model sustainable in the long term? Let's analyze in detail.
GBTC Leads Revenue: $268.5 Million Per Year
According to data from Coinglass, #GBTC from Grayscale generates $268.5 million in revenue per year with a fee of 1.5%, applied to $17.9 billion in assets under management. This figure far exceeds the total revenue of $211.8 million from all other Bitcoin spot ETFs in the U.S. (managing a total of $89 billion). Nate Geraci, President of ETF Store, commented on X: 'GBTC makes more money than all other ETFs combined, and it is not even close.'
Despite losing more than half its assets since Bitcoin spot ETFs launched in January 2024, GBTC still maintains its position thanks to its first-mover advantage and high fees. For example, BlackRock's IBIT manages $56 billion in assets – three times that of GBTC – but only generates $137 million in revenue with a fee of 0.25%.
First-Mover Advantage and Fee Strategy
Grayscale has pioneered regulated Bitcoin investment since 2013 as a private trust before converting to an ETF in January 2024 after a legal victory against the SEC during Gary Gensler's tenure. The first-mover advantage, along with a strong brand, allows #Grayscale to maintain a fee of 1.5% – seven times higher than some competitors. However, this fee also causes GBTC to face significant capital outflows, with a record $618 million in one day on March 19, 2024.
Challenges and Innovation Dynamics
Despite leading in revenue, GBTC faces intense competitive pressure. Many investors do not switch to lower-fee funds due to tax concerns when converting. In response, Grayscale launched the Bitcoin Mini Trust ($BTC ) in March 2025, offering a lower fee option and diversifying its product portfolio. Grayscale CEO Michael Sonnenshein stated in April 2024 that fees would decrease as the ETF market matures.
James Seyffart, an analyst at Bloomberg Intelligence, noted that GBTC's capital outflows will slow, but if the current pace continues, the fund could run out of Bitcoin by July 8, 2025. However, with the recovering crypto market (Bitcoin rising from $85,100 to $93,300, ETFs net buying $3.062 billion last week), GBTC still has the opportunity to strengthen its position.
Impact on the Crypto Market
The dominance of GBTC shows:
Increase institutional confidence: Despite high fees, GBTC remains attractive to institutional investors, similar to moves from BlackRock (IBIT) and Cardone Capital (buying 350 BTC).
Fostering competition: GBTC's high fees force competitors like BlackRock and Fidelity (FBTC net buying $574 million last week) to innovate, benefiting investors.
Supporting the ecosystem: The stability of GBTC contributes to invigorating the Bitcoin ETF market, thereby supporting other assets like XRP (2X leveraged ETF set to launch).
Conclusion: Will GBTC Continue to Lead?
Despite facing capital outflows, Grayscale's GBTC still leads Bitcoin spot ETF revenue in the U.S. with $268.5 million per year, thanks to its first-mover advantage and a fee of 1.5%. With the launch of the Bitcoin Mini Trust and the recovering crypto market, Grayscale has the opportunity to maintain its position, but needs to adjust fees for sustainable competition. Will GBTC continue to dominate? Investors should closely monitor to seize opportunities.
Risk warning: Crypto investments carry high risks due to price volatility and legal uncertainties. Please consider carefully before participating.