Digital Currency Group (DCG), the parent company of asset manager Grayscale, reported first-quarter revenue up 11 percent from the previous quarter to $229 million.

In a letter to shareholders on Tuesday, the firm said grayscale contributed $156 million to its first-quarter revenue. Thanks to the rapid rise in the price of Bitcoin (BTC) and Ether (ETH), the Grayscale Bitcoin Trust (GBTC) turned into an ETF, despite huge discounts and a reduction in management fees. It was flat. “While Grayscale expected increased competition under the ETF wrapper, Q1 revenue was attributable to GBTC,” the company said.

Two other DCG notable ventures, crypto mining pool Foundry and investment platform Luno, saw revenue growth of 35% and 46%, respectively.

“The first quarter of 2024 was marked by several exciting developments for our industry, including the approval of Grayscale’s GBTC and Spot Bitcoin ETFs in the US, and bitcoin prices hitting all-time highs in March. I, we are pleased to report a strong start to the year for DCG,” the company told shareholders.

On a year-over-year basis, DCG’s first-quarter revenue was up 51 percent compared to the same period last year while the price of bitcoin was up nearly 134 percent.

In January, Grayscale converted GBTC, which had existed as a closed-end fund for more than a decade, into a spot ETF, bringing such a fund to the market. Became one of ten issuers. While billions flowed into new vehicles, GBTC, whose management fee of 1.50% was 100 basis points higher than its rivals, experienced billions in outflows.

While the company said it will eventually lower its fees, it has yet to do so. Meanwhile, Grayscale filed in March for a new product called the Grayscale Bitcoin Money Trust ETF, which will have fees much lower than GBTC. The fund has yet to be approved by the US Securities and Exchange Commission (SEC) but will allow investors to get the same exposure to bitcoin as they get through GBTC, just for a lower fee. .