- GBTC generated $268.5 million in 2024, outperforming all other spot Bitcoin ETFs combined.
- Despite $18 billion in outflows, GBTC’s high 1.5% fee sustains its revenue dominance.
- Grayscale’s investor loyalty and tax friction limit redemptions, preserving its core AUM base.
Grayscale’s GBTC has maintained its lead in spot Bitcoin ETF revenue despite heavy investor redemptions in 2024. The fund earned $268.5 million in annual revenue, surpassing the $211.8 million generated by all other US-based spot Bitcoin ETFs combined. This dominance continues even as GBTC lost over $18 billion in assets under management since January.
GBTC’s 1.5 percent fee remains significantly higher than rival ETFs such as BlackRock’s IBIT and Fidelity’s FBTC, both charging only 0.25 percent. Grayscale’s higher fee applied to $17.9 billion in assets has been the primary driver of its revenue strength. By contrast, IBIT, with $56 billion in AUM, reported just $137 million in revenue for 2024.
Investors Exit but Revenue Engine Holds
GBTC experienced a daily average outflow of nearly $90 million since its ETF conversion, with the largest single-day outflow reaching $618 million on March 19. These exits followed the closing of GBTC’s long-standing discount to net asset value, which fell from 50% to near zero by mid-2024. Despite this, high-fee revenue continues to cushion outflow impacts.
To appeal to fee-conscious investors, Grayscale introduced the Bitcoin Mini Trust in March 2025, offering a reduced 0.15% fee. The Mini Trust started with $1.7 billion in assets and attracted $168.9 million in inflows. However, it contributes only a fraction of GBTC’s annual revenue, reinforcing the older fund’s financial edge.
Loyalty and Tax Constraints Shape Investor Behavior
Many GBTC investors have held shares since its early days, with substantial unrealized gains creating tax barriers to exit. This tax friction discourages switching to lower-fee options. Additionally, GBTC’s long-standing regulatory presence and availability in IRAs and brokerage platforms support continued institutional and retail participation.
Grayscale’s early market entry and its legal battle victory against the SEC have helped preserve investor trust. The fund’s custodianship by Coinbase and accessibility across major platforms continue to underpin its credibility in a growing and increasingly competitive ETF market.
