Grayscale Investments, operator of GBTC Bitcoin ETF, recorded $156 million in Q1, with parent company DCG’s revenue rising 11% to $229 million.
Digital Currency Group, the parent company of Grayscale Investments, has disclosed revenue growth for the first quarter of 2024.
In January, following its conversion to a spot Bitcoin exchange-traded fund (ETF), Grayscale decided to maintain fees for GBTC at 1.50%. As a result, the company’s revenue remained marginally unchanged at $229 million for DCG.
Grayscale Revenue Came in Flat Amid $17 Billion Outflows
A letter to shareholders from Digital Currency Group (DCG), the parent company of Grayscale Investments, stated that first-quarter revenue increased by 11% to $229 million in 2024.
In the first quarter, Grayscale, the operator of the Grayscale Bitcoin Trust (GBTC), generated $156 million in revenue.
Concerning the fourth quarter of 2023, revenue was virtually unchanged.
Grayscale has experienced $17.4 billion in outflows since January, when the GBTC converted to a spot Bitcoin ETF, per Bloomberg and Farside Investors.
Investors abandoned GBTC in favor of Bitcoin ETFs that exhibited reduced management fees.
Before reaching a predetermined AUM, financial behemoths BlackRock and Fidelity provided investors with reduced or waived fees.
“While Grayscale expected outflows alongside increased competition under the ETF wrapper, Q1 revenue attributable to GBTC nevertheless exceeded our expectations,” the company said.
In the first quarter, higher trading volume contributed to a 35% increase in revenue for DCG’s mining subsidiary Foundry and a 46% increase in revenue for the cryptocurrency exchange Luno.
Slow GBTC Outflows and Inflows Recorded
Current data indicates that US spot Bitcoin ETFs have encountered a cumulative net inflow of $11.77 billion thus far.
However, spot Bitcoin ETF demand decreased as markets struggled to surmount the tightening of US financial conditions.
Concerns regarding persistent inflation and stagflation confront the Federal Reserve.
Wednesday saw an inflow of $11.5 million into Spot Bitcoin ETF; Bitwise Bitcoin ETF (BITB) was the only other ETF to experience an inflow.
GBTC and other spot Bitcoin ETFs experienced no inflows.
The price of Bitcoin has increased by 2% in the last few hours from its intraday nadir and is now $61,954.
The 24-hour minimum and maximum prices are $60,648 and $62,740, respectively.
Moreover, there has been a marginal rise in trading volume over the past twenty-four hours.
