Grayscale Bitcoin Trust, the granddaddy of crypto funds, owns 654,600 coins, worth $20.7 billion. That revolving door would cause bitcoin funds to trade at prices very close to their asset value. In the first quarter of this year that 2% fee brought in $144 million of revenue from Grayscale’s bitcoin fund. Why, you might ask, would people stay put in the original Grayscale Bitcoin at, say, 1.9% a year when a Grayscale Bitcoin II can be had for maybe half the price? The ecosystem collapsed this year when Grayscale Bitcoin shares sank to a discount to their asset value.

Source: Forbes July 18, 2021 09:56 UTC