DCG Reports 51% Revenue Growth Amidst Bitcoin ETF Competition
- The crypto behemoth reportedly informed shareholders in a letter of $229 million revenue.
- Revenue increased for other DCG companies throughout the quarter as well.
The rebound in the cryptocurrency markets in the first quarter of 2024 drove a dramatic increase in revenue for Digital Currency Group (DCG). The crypto behemoth reportedly informed shareholders in a letter that revenue increased 51% year-over-year to $229 million.
Despite $17.4 billion flowing out of its Bitcoin fund since it became an exchange-traded fund (ETF) in January, Grayscales revenue remained stable throughout the quarter. The asset manager was able to offset losses in assets under management with $156 million in revenue, which was driven by higher asset values.
Overall Substantial Growth
The increasing rivalry among Bitcoin ETF issuers providing cheaper management fees is the root cause of Grayscales outflows. Management costs for funds like the Bitwise Bitcoin ETF (BITB) are just 0.2 percent, in contrast to the 1.5 percent charged by the Grayscale Bitcoin Trust (GBTC).
Despite Grayscales predictions of outflows due to greater competition in the ETF wrapper, Digital Currency Group said in their letter that Q1 revenue from GBTC still surpassed their estimates.
Revenue increased for other DCG companies throughout the quarter as well. Staking services and equipment sales helped crypto mining pool Foundrys revenue grow 35% to $51 million. Increased trading volumes caused Lunos income to surge 46% to $16 million.
Regulatory hurdles in the US have been a problem for the giant. The NYAG recently stepped up its fraud lawsuit against DCG, its CEO Barry Silbert, and the former CEO of Genesis Global Capital, Soichiro Moro, to seek $3 billion in damages.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
