Grayscale’s Size, ProShares’ Yield, and ARK’s Low Fee Shape Bitcoin ETF Choices

Grayscale Bitcoin Trust (GBTC) charges an annual expense ratio of 1.5%, the highest among the three major Bitcoin ETFs. That 1.5% drag compounds over time, making it a meaningful headwind for long-term holders compared to alternatives with lower fees. In contrast, ARK 21Shares Bitcoin ETF (ARKB) charges just 0.21% per year, the lowest of the three. ARKB’s tighter cost structure is matched by a year-to-date return of -14%, which closely tracks Bitcoin’s -11% decline with minimal structural friction. ProShares Bitcoin ETF (BITO), the oldest of the three, offers a stated dividend yield of 0.9% but underperforms Bitcoin by 4 percentage points over the past year due to roll costs and its 0.95% expense ratio. GBTC, despite its $10.5 billion asset base and direct Bitcoin exposure, returns -15% year to date, matching Bitcoin’s drop but underperforming due to its high fee. For long-term investors, the cost differential between these funds—spanning from 0.21% to 1.5% annually—can significantly alter net returns over time.