I have a bit of GBTC in a retirement account. Right now, Grayscale takes 2% a year so if currently it’s about 1113 shares of GBTC per Bitcoin in their wallet(s), next year it will be about 1135 shares per Bitcoin. I’m assuming that once it’s converted into a ETF, that rate will come down some as they’ll have to be competing against Blackrock, Fidelity and others.
The poker analogy is almost right, but there the rake is typically capped. Blackrock and their ilk likely won’t have a cap. The house always wins.
Yeah I mean I didn't want to convolute the issue by mentioning the cap on the rake.
2% is a lot more than I assumed it would be.
Perhaps my quarter of a percent example was super lowballed.
It might not be lowballed. GBTC’s is relatively high since they currently has relatively little competition (OBTC and a few others). High as 2% might seem, it didn’t much bother me when I took a position in it. If the underlying asset has a track record of 100% a year returns, only making 98% doesn’t seem too shabby.