TBH on Nostr: Quick check in on GBTC who started the year with 619k bitcoin in custody and are down ...
Quick check in on GBTC who started the year with 619k bitcoin in custody and are down to 218k.
Winners or losers? They have lost custody of 400k bitcoin since converting to an ETF because they didn’t lower their 2% annual fee.
619k BTC spitting off 2% per year when BTC was 40k per in January meant they were running at a $495 million annual revenue run rate if nothing changed.
To not lose any BTC, they would have had to lower their fees to ~0.25% which would have meant a $151 million annual revenue run rate at BTC’s current $98k price.
They only lowered their rate to 1.5% and lost 2/3 of their BTC. But BTC did go up to $98k. So they are a current run rate of $320 million.
They lost 2/3’s of their BTC and doubled their money!
Looking like winners right now, especially if:
1. They bought BTC with those “extra proceeds”
2. These last 218k BTC are “sticky” and keep sending back 1.5% fees into the future.
Winners or losers? They have lost custody of 400k bitcoin since converting to an ETF because they didn’t lower their 2% annual fee.
619k BTC spitting off 2% per year when BTC was 40k per in January meant they were running at a $495 million annual revenue run rate if nothing changed.
To not lose any BTC, they would have had to lower their fees to ~0.25% which would have meant a $151 million annual revenue run rate at BTC’s current $98k price.
They only lowered their rate to 1.5% and lost 2/3 of their BTC. But BTC did go up to $98k. So they are a current run rate of $320 million.
They lost 2/3’s of their BTC and doubled their money!
Looking like winners right now, especially if:
1. They bought BTC with those “extra proceeds”
2. These last 218k BTC are “sticky” and keep sending back 1.5% fees into the future.