Grayscale Bitcoin Trust: reorganization and possible changes💰

We're sure you've heard by now that Grayscale Investments CEO Michael Sonnenschein has resigned after a decade in office, and Peter Mintzberg from Goldman Sachs will take over as the new CEO in August.

Mintzberg will lead Grayscale at a difficult time, as the company's bitcoin fund, Grayscale Bitcoin Trust ($GBTC), has experienced massive outflows of more than $17 billion since becoming an exchange-traded fund in January.

🔎 Why is this happening?

While its competitors offer low fees - BlackRock's iShares Bitcoin Trust charges about 0.25% (0.12% for the first 6 months), Fidelity - 0.39%, Ark - 0.21%, and Bitwise - 0.20% (both have zero fees for the first 6 months); Grayscale continues to charge a high fee of 1.5%. Therefore, such a significant difference is likely to be the main factor behind the significant outflow of funds from GBTC.

📊 Today, the number of BTC on the balance sheet is 290 thousand, although 3 months ago, before the structure was changed, they held about 624 thousand. Given the level of commission, outflows from the fund have led to a decrease in Grayscale's profits by about $144 million annually. Given the current size of the assets ($19.4 billion), the current fees are about $290 million annually.

💬 The details of this reorganization are not disclosed, but it is widely believed that Mintzberg will be able to overcome the outflow trend and increase investor confidence in the fund.