Grayscale's flagship bitcoin (BTC) listed investment trust product will have the highest commissions of any U.S. bitcoin-spot investment trust, according to CEO Michael Sonenschein, but only after the product "begins to mature."
In an interview at the Canaccord Genuity Digital Asset Symposium on April 10, CEO Sonenshein said that the debut of commodity or specific themed products, such as his #Grayscale #binance Trust (GBTC), will be the first time investors will be able to access the assets If available, "the market tends to get very excited.
We're still in the development stage of bitcoin.
Over time, Zonenschein said, the product will "start to mature" and the market will consolidate as investors spread large sums of money across multiple instruments.
This means that over time, commissions will come down as well. We will be lowering the commission on GBTC, which means the first phase of the first wave of adoption is behind us.
Sonenschein says new products, such as the recently launched Bitcoin #ETF fund, typically appear on wealth management platforms.
Such products have yet to emerge," he says. Here in the U. S. , we haven't yet reached the next stage of adoption and growth.
GBTC was launched in 2015 and converted to an ETF in January, at the same time as the launch of nine other bitcoin ETFs, after Grayscale won a case against the Securities and Exchange Commission to have GBTC's conversion application reviewed but rejected.
GBTC's management fee is the highest among U. S. bitcoin funds at 1.5% annually, compared to 0.30% annually for competitors.
In addition, according to Farside Investors, the ETF has experienced the highest outflows among similar funds since converting in mid-January, with $16.1 billion in outflows as of April 11.
Sonenschein argues that since the conversion, GBTC has become a "capital market and risk transfer tool" for those looking to gain exposure to bitcoin.
'GBTC has a very large number of shares outstanding, high daily liquidity and very tight spreads,' he added. " he added.
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