Grayscale Bitcoin Trust ETF's high fees cause it to lag behind cheaper Bitcoin ETFs.

The Grayscale Bitcoin Trust ETF (GBTC) faces a major disadvantage due to its high 1.5% expense ratio compared to competitors charging only 0.15–0.25%. This structural cost drag leads to long-term underperformance against both spot Bitcoin and lower-cost ETFs like IBIT and FBTC. While existing holders remain due to tax and institutional reasons, these are temporary frictions rather than fundamental benefits. New investors looking for Bitcoin exposure in traditional markets are advised to avoid GBTC and choose more affordable, liquid alternatives instead.