Grayscale Bitcoin Trust Is Screwing Retail (and Institutions) on Fees

Key Takeaways

  • Grayscale Bitcoin Trust was lauded as a major step towards making Bitcoin more accessible to institutional and retail investors

  • Yet, Grayscale’s Bitcoin product, GBTC, charges people outrageous fees for the privilege of owning Bitcoin

  • Tallying all the fees, OTC brokers are the clear winners in this arrangement⁠⁠, until investors smarten up and take charge of their own keys that is

“Institutional adoption” has long been a narrative surrounding Bitcoin, and Grayscale helped fulfill that with their trust, giving investors access to Bitcoin-backed securities. Traders who actually take the plunge, however, are losing as much as 10% of their investment right off the bat. Institutions are supposedly the panacea that will allow Bitcoin to hit six digits. Grayscale Bitcoin Trust, formerly “The Bitcoin Investment Trust,” was founded in September 2013 to give investors access to Bitcoin without needing to custody their coins. Two years later, FINRA gave Grayscale clearance to sell these stocks on over-the-counter markets. Read More...

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