Everything you wanted to know about Grayscale BTC Trust but were afraid to ask!

[franky1]

grayscale want the outflows.. they want to remove their ownership of so much coin.. its a liability that can be taken by the courts in the bankruptcy litigations of DCG sister companies

grayscale then want to make a secondary ETF where they dont "own" the baskets, but instead just manage other brokers baskets

https://www.grayscale.com/blog/general-updates/what-is-grayscale-bitcoin-mini-trust
they want brokers to buy grayscale(dcg) owned coin of what was 630k in december 2023.. and move it out of grayscale gbtc ownership, and into other etf(eventually hope of grayscales non-self-coin owned etf offering of the 'mini'
and then the brokers own the coin and lock it into coinbase for coinbase(dcg sister) to manage and grayscale(dcg sister) to manage, without ownership by any DCG sister

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[bbc.reporter]

@JayJuanGee. It makes it appear that the Ethereum promotions and marketing propaganda is very successful if they can make people think that every fee relating to the cryptospace can be called a gas fee hehehehe.

@franky1. Does that imply Grayscale will never lower their management fees? They would not have announced to lower it if they did not want it, I reckon.

[OcTradism]

@JayJuanGee. It makes appear that the Ethereum promotions and marketing propaganda is very successful if they can make people think that every fee relating to the cryptospace can be called a gas fee hehehehe.

Gas fee is for EVM blockchains and it does not apply for Bitcoin blockchain and even Bitcoin forks Proof of Work.

Recent weeks, I saw many posts on X platform with Ethereum Gas Fee Refund. Misleading scam posts like "I receive $x,xxx of gas fee refund from Ethereum" is very annoying.

I reported many posts in X Ads but X platform and their staffs didn't do anything to stop those scam Ads.

[franky1]

@JayJuanGee. It makes it appear that the Ethereum promotions and marketing propaganda is very successful if they can make people think that every fee relating to the cryptospace can be called a gas fee hehehehe.

@franky1. Does that imply Grayscale will never lower their management fees? They would not have announced to lower it if they did not want it, I reckon.

i reckon they will either:
get down to a safe hoard amount of GBTC(still have some grayscale owned coin locked) before lowering fee's of gbtc)
or
more savvi just get a 'mini' approved(if approved that is) and just empty GBTC and get brokers to basket up coin in the mini and let the GBTC die out

but their main game is to have high fee's to not have brokers in GBTC adding baskets(coin/shares).. because they want AP's trying to get current grayscale owned basket shares dissolved and converted into btc to sell off so grayscale can de-risk themselves of having a huge coin hoard in ownership

[fillippone]

Just wondering if we have just witnessed the last round of outflows from GBTC.
Now that presumedly Genesis has finished selling, I can't see why anyone else should do so: New buyers are focusing on IBIT and FBTC, instead of the legacy fund. We might be near the bottom in GBTC.

[franky1]

Just wondering if we have just witnessed the last round of outflows from GBTC.
Now that presumedly Genesis has finished selling, I can't see why anyone else should do so: New buyers are focusing on IBIT and FBTC, instead of the legacy fund. We might be near the bottom in GBTC.

just witnessed? its the weekend, buys(to dissolve shares  and outflow coin holdings) die down at weekends
..also it was US spring break and about to be other countries easter break.. so expect slowdown. even traders need a holiday

also GBTC buyers(to then request dissolving shares to move coin out to exchanges(outflows) to then move into other etf(inflows)) are not done by end user investor buyers of shares (meaning not done by your grandparents, your parents, your pension)
its actual 100% AP(brokers(agents/sponsors)).. emphasis, not your grandparents..  not end investors

[fillippone]

Just wondering if we have just witnessed the last round of outflows from GBTC.
Now that presumedly Genesis has finished selling, I can't see why anyone else should do so: New buyers are focusing on IBIT and FBTC, instead of the legacy fund. We might be near the bottom in GBTC.

just witnessed? its the weekend, buys(to dissolve shares  and outflow coin holdings) die down at weekends
..also it was US spring break and about to be other countries easter break.. so expect slowdown. even traders need a holiday

also GBTC buyers(to then request dissolving shares to move coin out to exchanges(outflows) to then move into other etf(inflows)) are not done by end user investor buyers of shares (meaning not done by your grandparents, your parents, your pension)
its actual 100% AP(brokers(agents/sponsors)).. emphasis, not your grandparents..  not end investors

Nice analysis, but I guess all the GBTC recent selling was about Genesys selling shares and using proceeds to buy BTC (sort of neutral market move).
The thing is that buying from IBIT and FBTC also slow down.
Wondering what is driving what. GBTC driving inflows or the other way around? 

[fillippone]

Grayscale finally announced the fee rate on their Bitcoin Mini Trust ETF: they are offering a very competitive 0.15% fee ratio.


The SEC filing also showed they seeded the funds with 63,204 Bitcoin.

This was is a huge amount, almost 10% of total funds. So I think they are going to “airdrop” this to their current customers.
Of course, this will act as a de facto fee reduction of almost 9%, as, of course, this switch event won’t be taxable.
So I guess the outflows from GBTC will go on in the future, but at least there will be a lesser outflow from broad Grayscale products.