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March 3, 2024
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Spot Bitcoin ETF marketing war takes new twist with Grayscale


The marketing competition between spot Bitcoin ETF issuers has reached a new level with Grayscale pushing out its offering on several media platforms including television and posters.

Grayscale GBTC Ads Proliferates

Senior ETF analyst at Bloomberg Eric Balchunas acknowledged the marketing strategies that investment asset management firm Grayscale is adopting for its GBTC. 

According to his recent post, he pointed out that Grayscale has encroached “30th St Station in Philly” with posters and several media platforms, all marketing its Bitcoin ETF. In Balchunas’ opinion, this makes it quite hard to escape noticing the spot Bitcoin ETFs jingle.

An X user reacted to Balchunas post, confirming that he had also seen several GBTC ads at the airport in Atlanta. This underscores the fact that Grayscale is trying to be on top of its spot Bitcoin ETF marketing game and the reason for this advertising upgrade is not far fetched.

Apart from the first trading day when Grayscale dominated the market with more than $4 billion in trading volumes, the asset management firm has seen significant outflows on its spot Bitcoin ETF. Several holders who had wanted to do away with their GBTC holdings for many years, began to dump them as soon as the United States Securities and Exchange Commission (SEC) greenlighted eleven spot Bitcoin ETF applications including that of Grayscale. 

As of the fifth trading day, Grayscale registered a major net outflow of nearly $580 million, although this time, almost all Bitcoin ETFs were bleeding. This huge outflow brought the firm’s GBTC outflows to about $2.2 billion. The Head of Research at CoinShares, James Butterfill, stated that the outflow of GBTC amounted to only $1 billion on day 5.

To get into a better position in general, Grayscale believes it’s spot Bitcoin ETF ads can make the difference.

High Fees in Spot Bitcoin ETF Products

It is worthy of note that Grayscale fees have also contributed to the massive outflows on its GBTC. Compared to all other spot Bitcoin ETF issuers, Grayscale has the highest fee pegged at 1.5% and the firm’s CEO Michael Sonnenshein recently defended the hefty fee in the midst of customers’ skepticism. 

He cited the firm’s impressive ten years track record, extensive market liquidity, and Grayscale’s specialized focus as a crypto specialist, thereby questioning the long-term commitment of the other Bitcoin ETF issuers to the asset class. In the meantime, the other issuers are trying to establish their positions in the market as well with high ranked commercials.

By the close of the sixth trading day, net fund inflows into spot Bitcoin ETFs stood at $33.1 million, a proof that the ads are producing results.



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