I See No Reason To Buy GBTC
2026-01-06 19:45
Summary Grayscale Bitcoin Trust ETF remains unattractive due to its high 1.5% expense ratio versus peers’ 0.20–0.25%. GBTC’s AUM has slipped to third place among spot Bitcoin ETFs, with lower liquidity and continued outflows despite reduced fee flight in 2025. Bitcoin’s network fundamentals weakened in 2025, with transaction fees down 78% YoY and active addresses and transactions also declining. GBTC will track Bitcoin’s price, but long-term investors pay unnecessary fees versus lower-cost alternatives like IBIT and FBTC. Ten months after I last covered the Grayscale Bitcoin Trust ETF ( GBTC ) for Seeking Alpha, the GBTC share price is essentially flat. When I wrote that prior GBTC piece, it was actually the first in a series of downgrades that I gave BTC proxies from 'buy' to 'hold.' Down 6% during 2025, Bitcoin USD ( BTC-USD ) was one of the major laggards in the financial markets and trailed nearly every...
