Because they don’t have to be competitive, they have a 600,000ish Bitcoin head start

They are trying to capitalize on their enormous market share right now, since it’s a given that most coins will eventually leave them anyway (they are a horribly run business) 

 Because 2% on an asset that’s growing 50%+ isn’t a huge deal. Also, if you sell you pay capital gains…so the more sophisticated GBTC holder is sitting there not wanting to cash out because It is a taxable event.