Grayscale recently won a legal battle against the U.S. Securities and Exchange Commission (SEC) that could open the door for the digital asset management firm to transform its GBTC fund into a spot Bitcoin ETF. The court ruled that the SEC must reconsider Grayscale’s application, overturning the SEC’s initial denial on grounds that the decision was “arbitrary and capricious.” However, Grayscale may face challenges in terms of competitiveness due to its 2% fee, which is higher than the average fee for U.S.-listed ETFs (0.54%) and the global average for cryptocurrency ETPs (1.48%). Grayscale CEO Michael Sonnenshein hinted at a possible reduction in fees should they successfully convert the GBTC fund into an ETF, but did not specify the degree to which fees might be lowered. Despite the fee structure, Grayscale’s popularity among investors is evident. Reports from CCData highlighted that Grayscale’s GBTC fund witnessed a remarkable addition of $1.17 billion to its assets under management (AUM) on Aug. 29 and 30—the day of its court win and the day that followed. This significant growth brings Grayscale’s total AUM to $17.4 billion.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | positive |
| Relevance Score | 8 |
| People | CCData, Michael Sonnenshein |
| Companies | CCData, SEC, Digital Currency Group, Bloomberg, Grayscale |
| Currencies | Ethereum, Bitcoin |
| Securities | None |
