Bitcoin ETF: Here’s Key Hurdle Ahead for Potential Grayscale ETF

Asset manager Grayscale is faced with a major hurdle in its quest for a spot Bitcoin (BTC) Exchange Traded Fund (ETF). Earlier this week, a Federal court ruled that the United States Securities and Exchange Commission (SEC) must review its rejection of Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) product into a spot Bitcoin ETF.
Grayscale Bags New Crypto Victory
This Grayscale ruling marked a second landslide for the cryptocurrency industry against the markets regulator following Ripple’s victory back in July. According to some analysts led by Gautam Chhugani, the ruling “likely clears the path for a spot bitcoin ETF,” and increases the chances that the SEC might approve all the current applications from BlackRock, Fidelity, WisdomTree and others together.
However, Grayscale has found itself in the never-ending contest of the Exchange Traded Products (ETP) industry over fees. The current form of the Grayscale ETF carries a 2% fee, a peg the company may find tough to sustain if it will stay competitive.
Looking at other U.S.-listed ETFs that have an average of 0.54% or other globally-listed crypto exchange-traded products with a 1.48% fee, the Grayscale product fee can be judged to be considerably high.
Michael Sonnenshein, Grayscale’s Chief Executive Officer (CEO) claimed that an adjustment will possibly be made to the fees when GBTC converts to an ETF. Markedly, he did not specify how low Grayscale will be willing to go on the fees.
Grayscale to Face Tough Fee Competition
It is worth noting that the likes of BlackRock Inc., Invesco Ltd and Fidelity Investment are yet to state specific fees for their proposed Bitcoin ETFs. Still, it is expected to be only a fraction of Grayscale’s fee. Nate Geraci, president of popular advisory firm The ETF Store, reiterated this possibility.
“Grayscale is up against issuers such as BlackRock and Invesco who are highly accustomed to bludgeoning each other on fees. Spot-Bitcoin ETFs will all generally look the same – they simply hold Bitcoin — which makes fees a key differentiator,” he said.
Geraci went on to suggest that Grayscale may need to enter the ETF “Terrordome” with an open mind which may mean going from a 200 basis point to a 20 basis point.
- Polymarket Founder Shayne Coplan Teases Potential POLY Token After $2B ICE Deal
- FOMC Minutes Signal Fed Open to More Rate Cuts This Year, Bitcoin Bounces
- North Dakota To Issue ‘Roughrider’ Stablecoin Following Wyoming’s Footsteps
- Ethena Labs and Jupiter Partner to Launch JupUSD Stablecoin on Solana
- BlackRock’s Bitcoin ETF Leads ETFs With $3.5B Weekly Inflows as It Eyes $100B in AUM
- Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?
- Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
- Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?
- ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?
- Ethereum Price Could Soar to $6,500 as BlackRock’s ETF Nears $20B Milestone