Grayscale’s GBTC Surpasses All U.S. Spot Bitcoin ETFs in Revenue

Grayscale’s Bitcoin Trust ETF, GBTC, leads the U.S. market in revenue, generating $268.5 million annually, far surpassing its competitors like BlackRock’s IBIT. Its high fees raise concerns, but tax implications keep investors from switching. Following a significant market shift, GBTC faces challenges yet maintains its revenue despite losing holdings since spot ETFs debuted in January 2024. Grayscale introduced a lower-cost Bitcoin Mini Trust to diversify offerings amid stiff competition.

Grayscale’s Bitcoin Trust ETF (GBTC) continues to dominate the revenue game, raking in more cash than all other U.S. spot Bitcoin ETFs combined. Despite charging fees that are up to seven times higher than its competitors, GBTC generates an annual revenue of around $268.5 million. This puts it far ahead of firms like BlackRock, which can only muster about $137 million from its IBIT fund holding approximately three times more assets.

Nate Geraci, president of ETF Store, shared on X that GBTC is simply outpacing the competition. Armchair analysts may scratch their heads on this, given Grayscale’s hefty 1.5% expense ratio over its $17.9 billion in assets under management. In contrast, the other U.S. Bitcoin ETFs, which Geraci highlighted, accumulate just over $211.8 million from $89 billion in combined assets – raising interesting questions about fee structures in this evolving market.

Interestingly, GBTC has faced challenges since the launch of spot Bitcoin ETFs in January 2024, losing more than half its holdings. Yet it seems the fee structure has cushioned it somewhat, highlighting the stark divide in the economics between different funds. Even with BlackRock’s much larger asset pool, the revenue isn’t enough to topple GBTC’s stronghold.

In a bid to shake things up, Grayscale rolled out its Bitcoin Mini Trust (BTC) in March 2025, aiming to provide a more wallet-friendly option amid growing competition. After all, as Grayscale first entered the regulated Bitcoin landscape with its private trust back in 2013, this company has certainly fought tooth-and-nail, winning a crucial legal victory to transform its structure into an ETF last January.

Transitioning from a closed-end trust to an open-ended ETF offers more flexibility, allowing shares to be redeemed based on demand. It’s worth noting that ETFs usually boast lower expense ratios compared to mutual funds, which can enhance tax efficiency, an important factor for many investors.

Last year, Grayscale’s CEO Michael Sonnenshein suggested that as the ETF market evolves, fees might eventually decrease. However, GBTC has already seen its share of ups and downs, including its largest single-day outflow on March 19, 2024, when it lost a staggering $618 million. Analysts like James Seyffart from Bloomberg Intelligence suggest this trend might slow down, but if the pace continues, Grayscale could find itself short on Bitcoin by early July.