GRAYSCALE’S MINI-BITCOIN ETF TO OFFER MARKET’S LOWEST FEES 

Grayscale’s latest venture into the ETF market, the mini-Bitcoin ETF, is set to offer the lowest fees in the industry, based on a recent regulatory filing.

The asset management giant is looking to dominate the spot Bitcoin ETF market, especially after significant withdrawals from its main GBTC product. Grayscale has proposed a new, smaller Bitcoin ETF, aiming to undercut the fees of its ten competitors, setting its fees at a mere 0.15%.

Grayscale’s Mini-Bitcoin ETF

Eric Balchunas, a Bloomberg ETF analyst, remarked on the development:

“GBTC’s mini-me BTC will sport a fee of 15 basis points, positioning Grayscale as the provider of the market’s most affordable BTC ETF.”

He noted that while the 0.15% fee is tentative, the firm had to choose a figure for regulatory purposes, aware that it would draw attention, and opted for 15 basis points.

Currently, the Grayscale Bitcoin Trust charges a 1.5% fee, significantly higher than its competitors, which has contributed to a decline in its assets under management.

The closest competitor to the new fund, the Franklin Bitcoin ETF (EZBC), charges 0.19%.

The filing also states that upon the launch of the Bitcoin Mini Trust (BTC), Grayscale plans to transfer 10% of the assets from GBTC to the new fund, amounting to about 30,500 BTC or approximately $2 billion, although this number might decrease if GBTC continues to experience outflows.

Additionally, shares of the new fund will be automatically distributed to GBTC shareholders.

Since converting to a spot ETF in mid-January, GBTC has lost over 50% of its Bitcoin holdings, leaving it with 304,970 BTC after a $45.8 million outflow last Friday.

Despite losing $458 million last week, Grayscale observed a reduction in outflows and saw its first net inflows in over a week on April 19, totaling $59.7 million.

Concerns Over ETH ETF RejectionETF Store President Nate Geraci on April 19 commented on the subdued activity around spot ETH ETFs, indicating a consensus among industry analysts that such proposals would likely be rejected by the SEC in late May due to limited regulatory engagement.

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