- Grayscale’s high management fees led investors to flock to other ETF issuers, according to a crypto trader.
- Grayscale reportedly had to sell Bitcoin holdings to pay back investors.
- The initial days of Bitcoin ETF trading saw Grayscale facing a $579 million loss.
Crypto influencer and trader known as Ash Crypto shared his perspective on the reasons behind Grayscale “dumping” Bitcoin.
The trader believes that before the spot Bitcoin exchange-traded fund (ETF) approval, the Grayscale Bitcoin Trust (GBTC) used to redeem its shares by providing investors with equivalent value in USD.
Grayscale did so without selling the Bitcoin holdings, which allowed the investment firm to accumulate a significant amount of Bitcoin, making it one of the largest Bitcoin holders.
According to the crypto trader, investors were withdrawing their money from GBTC for two main reasons, one of which was Grayscale’s high management fees. Grayscale is reportedly charging a 1.5% yearly management fee, which is five to six times the fees charged by other ETF issuers.
Moreover, the second reason is that some i…
The post Grayscale Dumping Bitcoin Holdings? Here’s Why appeared first on Coin Edition.