Grayscale Bitcoin Trust charges 1.5% fees, much higher than cheaper Bitcoin ETFs, cutting investor returns.

Grayscale Bitcoin Trust (GBTC) charges a 1.5% annual fee, significantly higher than competitors like BlackRock’s iShares Bitcoin Trust (0.33%). Despite converting to an ETF in January 2024, GBTC's fees remain high, causing it to underperform cheaper alternatives by roughly the fee difference. Investors face not only higher costs but also potential tax impacts from outflows as holders sell to avoid fees. With similar Bitcoin exposure available at a fraction of the cost, investors should reconsider if GBTC's premium fee is worth it.