Grayscale had a tough start to 2024 as its earnings didn't grow much. People took a lot of money out of its Grayscale Bitcoin ETF, known as GBTC. While other crypto companies did well in the first quarter of 2024, Grayscale didn't see much growth. This was because GBTC charges high fees compared to other Bitcoin ETFs.

Grayscale's parent company, Digital Currency Group, said Grayscale made $156 million in revenue in Q1. But since the US approved Bitcoin ETFs, Grayscale has lost $17.5 billion because people are moving their money to cheaper options. GBTC charges a 1.5% fee, while other ETFs charge as little as 0.3%. Grayscale says its revenue didn't go up much because the price of Bitcoin and Ether went up, but it didn't have as much money to manage.

Even though Bitcoin ETFs in the US got $11 billion in new money since January 2024, GBTC lost $44 million on May 9 alone. Digital Currency Group, Grayscale's parent company, made more money in Q1, reaching $229 million, mostly because cryptocurrency prices went up. But even though Bitcoin's price went up a lot, Grayscale's earnings didn't grow much. Digital Currency Group says this is because GBTC lost money and people took their money out, and its mining business made about the same as before.

Overall, Grayscale had a tough start to 2024 because its Bitcoin ETF lost a lot of money. Despite the parent company making more money overall, Grayscale's earnings didn't grow much. This is because people took money out of GBTC, which charges higher fees than other Bitcoin ETFs.