Grayscale\u2019s 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.<\/p>\n\n\n\n
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%.<\/p>\n\n\n\n
Grayscale’s Mini-Bitcoin ETF<\/p>\n\n\n\n
Eric Balchunas, a Bloomberg ETF analyst, remarked on the development:<\/p>\n\n\n\n
\u201cGBTC\u2019s mini-me BTC will sport a fee of 15 basis points, positioning Grayscale as the provider of the market\u2019s most affordable BTC ETF.\u201d<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
The closest competitor to the new fund, the Franklin Bitcoin ETF (EZBC), charges 0.19%.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Additionally, shares of the new fund will be automatically distributed to GBTC shareholders.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>","protected":false},"excerpt":{"rendered":"
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