Size matters in the world of exchange-traded fund. Grayscale Investments is the leader in the spot bitcoin ETFs market. If approved by the U.S. Securities and Exchange Commission (SEC), it would have more than $27 Billion of assets under its management.

BTC Price Index and Live Chart – CoinDesk”>(BTC) ETF proposal process in detail, a dozen or so issuers appear to be on the verge of being simultaneously approved by the SEC. Grayscale is a standout amongst the crowd, with its trove of over 619,000 BTC. It was launched in 2013 to allow institutional investors exposure to bitcoins without having to hold the asset.

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Other factors can also be considered, including the fee that these products will charge. Grayscale has proposed a 1.5% fee to increase its ETF. This is 100 basis points or 1 percentage point higher than its competitors.

In an interview, Grayscale Investments’ global head of ETFs, David LaValle said, “We are a huge differentiator compared to any other product on the market. We have more than a million investors, and we trade hundreds of millions in dollars on a daily base. This will continue once it is approved for uplisting on the New York Stock Exchange.”

In terms of fees, investors may not switch products solely to maintain the same exposure. For example, they might choose BlackRock’s or Fidelity’s lower fee structure for a bitcoin spot ETF. This is especially unlikely when you factor in tax considerations.

A Grayscale investor who has long-term capital gain in the range of 15% to 20% would have to look at a very long time horizon in order to cover that tax bill, based on basis points. Eric Balchunas is an analyst with Bloomberg Intelligence who focuses on ETFs. He agrees that taxes are a major consideration when it comes Grayscale.

Balchunas stated in an interview that “the tax issue benefits Grayscale.” In mutual funds, people often don’t like to be in an active fund that underperforms or overcharges but because the tax hit after years of bull market is so high, they stay.

Most market watchers expect Grayscale to see some outflows. This is especially true given that Grayscale Bitcoin Trust’s (GBTC) price has been trading at a significant discount to bitcoin’s underlying value in recent years.

In an interview, Sui Chung said that a number people have purchased GBTC units, betting it would become an ETF. “So, they buy at a discount and bet that when it becomes an index fund they can redeem the units for NAV net asset values. They then hoard that profit.” It’s difficult to estimate how much AUM will be involved, but it is likely to be substantial.

This can be augmented by a few esoteric elements. Chung says that although it’s not Grayscale’s problem, the fact is, investors have lost a lot of trust in Grayscale over the years because of its large NAV discounts. Grayscale’s parent company, Digital Currency Group has legal issues. “Although GBTC’s bankruptcy risk is low, not all investors understand that.” Chung stated that some investors may feel more comfortable with BlackRock or Invesco. Another DCG division, Genesis is restructuring in bankruptcy.

Read more: Does DCG’s Lawsuit Impact GBTC’s Chances for an ETF Conversion?

Bloomberg’s Balchunas notes that the ETF industry can be complex. Even if Grayscale dropped a few billions in assets quickly, it would still hold a significant advantage, he says.

He said that opening GBTC on the first day with more than $20 billion in daily volume and $350 millions is like bringing a firearm to a knifefight. “Any of these product would be happy to have such a large amount of money within three years. Let alone in the first week. Grayscale’s ability to convert in the first week, outside of BlackRock or Fidelity will make it extremely difficult for everyone else.

Balchunas explained that, although all signs point to Grayscale being approved along with other ETF candidates, the SEC may still attempt to prevent or delay their approval based on its stated goal of creating a level playing ground.

Balchunas stated, “You must remember that Grayscale embarrassed SEC when they successfully won their case.” I’m not saying that the SEC is petty. But if they wanted to get revenge they would probably use a parking fine as a reason to make trouble. Then they might be sued again. “It’s complicated.”

Nick Baker and Aoyon Asraf edited the book.