Massive Outflows from Grayscale’s ETFs: What’s Driving Investors Away?

Grayscale's GBTC saw $20.06B and ETHE $2.75B in outflows, signalling a shift in investor preferences. 

- High Fees: GBTC & ETHE charge 1.5%-2.5%, while competitors like BlackRock offer 0.12%-0.40% fees.

- New ETF Approvals: Spot Bitcoin & Ethereum ETFs now offer real-time pricing and better liquidity, unlike Grayscale’s closed-end funds.

- Liquidity & Redemption: New ETFs let investors easily exit positions, unlike Grayscale’s structure.

To stay competitive, Grayscale must lower fees and innovate, or it risks losing more ground.