Investors Blast Bitcoin Investment Trust Due to ‘Insane’ Expense Ratio

Andre Francois / Unsplash
Voyager
Voyager

Grayscale Bitcoin Investment Trust (GBTC), the lone investment trust tied to Bitcoin that trades on the public U.S. markets, has come under significant investor scrutiny after shares recently dropped to 80% below December highs while Bitcoin only fell 66% over the same period.

According to a report by Bloomberg, the reasoning behind the divergence in price action between GBTC and BTC is likely attributed to the trust’s high expense ratio, which is the percentage of assets used for administrative purposes.

While the average equity mutual fund expense ratio is around 0.59%, notes Bloomberg, the GBTC charges a whopping 2% fee that some investors are calling downright “insane.”

The GBTC is managed by Grayscale Investments, a crypto-focused investment fund, which notable has around $1.5 billion in digital assets under management.

GBTC via TradingView

BTC is currently down 1.7% over the last 24 hours to $6,468, leaving the largest cryptocurrency with a $112 billion market cap.

More: Bitcoin Investment Trust Loses Luster
Interesting: Grayscale Launches $6.3 Million Horizen (ZEN) Investment Trust

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

 
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