(Bloomberg) -- Grayscale Investments’s first-quarter revenue was flat after the issuer of the world’s largest cryptocurrency investment vehicle decided to hold the line on fees for its flagship Bitcoin exchange-traded fund. 

The operator of the Grayscale Bitcoin Trust had $156 million in revenue, little changed from the fourth quarter, according to a shareholder letter from its parent company, Digital Currency Group. Grayscale has seen outflows of about $17.4 billion since the ETF was converted from a trust in January, according to data compiled Bloomberg, as some investors appear to have shifted assets from GBTC into new, lower-cost funds offered by companies such as BlackRock and Fidelity. GBTC charges a management fee of 1.5%, while most of its peers charge less than 0.3%.

“While Grayscale expected outflows alongside increased competition under the ETF wrapper, Q1 revenue attributable to GBTC nevertheless exceeded our expectations,” the letter said.

The firm charged a 2% sponsorship fee before the trust was converted. Grayscale also cited higher average Bitcoin and Ether prices for the flat revenue, as well as the lower assets under management.

All US spot Bitcoin ETFs have had a total net inflow of more than $11 billion to date, but demand has slumped more recently amid a tightening of financial conditions in the US, where the Federal Reserve faces the challenge of overcoming sticky inflation.

DCG’s first-quarter revenue rose 11% to $229 million from the fourth quarter, driven mostly by higher asset prices, according to the letter. Revenue growth lagged the price appreciation of Bitcoin, which increased more than 60% in the period. DCG’s letter cited “lower GBTC sponsor fees and redemptions, and mining revenues at Foundry staying flat.”

Revenue at DCG’s mining subsidiary, Foundry, increased 35% sequentially, according to the letter, driven by staking and equipment-sales revenue. Sales at its Luno subsidiary, a crypto exchange, increased 46% quarter-over-quarter, driven by a jump in trading volume.   

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