How Grayscale’s IPO Could Change the Cost of Holding Its $35B in Crypto ETF Shares

What just happened (and yes, it’s a big deal)

Grayscale filed paperwork to go public, aiming to list Class A common stock under the ticker GRAY. They manage roughly $35 billion spread across more than 40 crypto products — including spot Bitcoin and Ethereum ETFs — so this is not a tiny wardrobe-cleanout sale. The initial filing didn’t say how many shares will be sold or at what price, but it did name major banks as lead managers.

Financially, the recent nine months weren’t exactly party mode: Grayscale reported revenue of about $318.7 million for the period ending Sept. 30, down from roughly $397.9 million the year before, and net income dipped too. Their operating margin is still pretty healthy, though — the kind of number that makes spreadsheet people smile.

Why ETF holders should care (short answer: fees, voting power, and plain old curiosity)

Turning into a public company changes the spotlight. Quarterly and annual reports will now spill more financial details, which means shareholders get to peer under the hood — and they tend to ask tough questions about fees and growth. Grayscale’s average management fee has already fallen (from about 1.67% to roughly 1.39% in the recent period) thanks to competition from cheaper ETFs. Becoming public adds another layer of pressure to keep fees attractive.

On the corporate-governance front, Grayscale’s parent retains super-voting Class B shares that give it roughly 10 votes per Class B share versus one vote for each Class A. That parent control will still hold most voting power after the IPO, which classifies Grayscale as a “controlled company” and exempts it from some NYSE governance rules. Those super-voting rights are designed to expire if the parent’s stake falls under 20% of outstanding shares — so whether that happens is one of the things to watch.

Importantly, the IPO is more about changing who owns the company than changing how the funds operate. Custody arrangements, trust paperwork, and day-to-day mechanics of the ETFs won’t be rearranged by the listing. The proceeds from the deal are slated to buy ownership interests from existing owners, not to inject fresh capital into fund operations or to directly alter sponsor fee agreements.

What this might mean for the cost to hold Grayscale ETFs

Short version: don’t expect a magic overnight change, but expect pressure. Competition from low-cost rivals has already nudged average fees down. Public shareholders and analysts will add another set of critics and watchdogs, which could make management more conscious of fee decisions — especially if revenue growth slows. On the other hand, the IPO isn’t raising operating cash for the funds, so there isn’t an immediate financial reason to hike fees to cover new costs.

Other things that could influence the real cost to holders: whether public scrutiny pushes the company to cut fees to defend market share, whether activist investors pressure management to prioritize profit over low fees, and whether the parent company’s voting control shifts over time (which could change strategy). Also keep an eye on any directed-share program for existing trust holders that could affect supply and demand dynamics in the short term.

Bottom line: being public makes Grayscale more transparent and potentially more responsive to fee-focused shareholders, which tends to nudge costs in the direction of what the market — and competing ETF providers — are already pushing toward. But it’s not an instant fee makeover; think slow boil, not a microwave zap.

Not investment advice: consider this a friendly newsy summary with a dash of sarcasm. If you’re thinking of moving money, do your homework or talk to someone who reads spreadsheets for fun.