XRP news today: Grayscale's GBTC Leads US Spot Bitcoin ETF Revenue Despite 50% Holding Loss

Grayscale's Bitcoin Trust ETF (GBTC) continues to dominate the US spot Bitcoin ETF market in terms of revenue, despite charging fees that are significantly higher than its competitors. The fund generates approximately $268.5 million in annual revenue, with a 1.5% expense ratio applied to $17.9 billion in assets under management. This revenue figure is higher than the combined revenue of all other spot Bitcoin ETFs, which generate an implied annual revenue of a little over $211.8 million from a total of $89 billion in assets under management.

GBTC's revenue dominance can be attributed to several factors, including its first-mover advantage and brand recognition. Grayscale's control over GBTC's management allows it to charge a 1.5% fee, which is up to seven times higher than its competitors. For example, BlackRock's IBIT holds three times more assets, at $56 billion, compared to GBTC's $18 billion, but it generates only about $137 million in revenue with its 0.25% fee.

Despite losing more than half its holdings since spot Bitcoin ETFs went live in January 2024, GBTC's revenue dominance persists. This reveals how fee structures have shaped the fund's economics, regardless of market share. Grayscale launched its Bitcoin Mini Trust (BTC) in March 2025 primarily to offer a lower-cost alternative to GBTC’s fee, while also diversifying its product lineup amid intensifying competition.

GBTC pioneered regulated Bitcoin investment in 2013 as a private trust, before offering an ETF in January of last year, alongside several other ETF issuers. This transition was made possible after Grayscale won a landmark case against the then-Gensler-led SEC to convert its trust to an ETF. When a trust converts to an ETF, key aspects of its structure change. From a closed-end form, it becomes open-ended, allowing shares to be redeemed based on demand. ETFs can be more tax efficient because ETF shares are generally redeemable "in-kind."

Grayscale's CEO Michael Sonnenshein claimed that the fees "will come down" as the ETF market matures. However, the largest single-day outflow for GBTC was recorded on March 19, 2024, totaling $618 million. At this pace, it could run out of Bitcoin by July 8, though analysts previously predicted that its outflows would "slow from here."

Grayscale's Bitcoin Trust (GBTC) continues to lead all US spot Bitcoin ETFs in revenue, despite facing significant outflows. The trust posted an outflow of $7.53 million, bringing the cumulative withdrawal to $22.69 billion. This trend highlights the challenges faced by Grayscale in maintaining its market position amidst a broader influx of capital into the Bitcoin ETF market. The overall weekly inflow for US spot Bitcoin ETFs reached $3 billion, indicating a robust interest in Bitcoin investments. However, Grayscale's GBTC remains the only ETF experiencing value erosion, suggesting a shift in investor preferences towards other Bitcoin ETFs.

The performance of Grayscale's ETFs extends beyond Bitcoin. Ethereum ETFs also saw a net inflow of $63.4 million, although Grayscale's Ethereum Trust (ETH) recorded an outflow. This mixed performance underscores the competitive landscape in the ETF market, where investors are diversifying their portfolios across various cryptocurrencies. The regulatory environment adds another layer of complexity. The U.S. Securities and Exchange Commission (SEC) postponed its decision on Grayscale's proposal to convert their Polkadot Trust into an ETF, along with other similar proposals. This delay reflects the cautious approach taken by regulators in approving new cryptocurrency-related financial products.

The broader cryptocurrency market has seen significant movements, with Bitcoin and XRP showing notable gains while Ethereum and Dogecoin have struggled. These fluctuations impact the performance of Grayscale's portfolios, which include a range of cryptocurrencies. The launch of new ETFs, such as ProShares' XRP futures ETFs, further intensifies the competition. ProShares is set to launch three new futures-based XRP ETFs, offering investors exposure to the price movements of XRP through an index. This development is part of a broader trend where financial institutions are expanding their cryptocurrency offerings to meet growing investor demand.

The regulatory landscape and market dynamics are shaping the future of cryptocurrency ETFs. The SEC's decision to delay the approval of Grayscale's Polkadot ETF highlights the regulatory scrutiny faced by the industry. Meanwhile, the launch of new ETFs by ProShares and the significant inflows into US spot Bitcoin ETFs indicate a maturing market with increasing investor interest. Grayscale's continued leadership in revenue, despite facing outflows, underscores its established position in the market. However, the competitive landscape and regulatory challenges suggest that the company will need to adapt to maintain its market share.