Grayscale Bitcoin Mini Trust ETF Sets Fee At 0.15%; Lowest Among Peers

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In simple terms, the Grayscale Bitcoin Mini Trust ETF is expected to charge a fee of just 0.15%, the lowest among its competitors. This decision has attracted significant interest from investors and could help Grayscale secure a larger market share.

Grayscale Bitcoin Mini Trust ETF Set to Have Lowest Fee

Grayscale’s latest SEC filing reveals their plan to launch the Grayscale Bitcoin Mini Trust with a management fee of 0.15%. Nate Geraci, president of The ETF Store, views this as a positive development and suggested that Grayscale might even consider reducing the fee to 0.10%.

If mini-GBTC launches at 15bps, it would be lowest cost spot btc ETF…
Think correct move by Grayscale & should even consider pricing at 10bps.
They can subsidize w/ GBTC revenue & pressure competitors.
Remember, idea is GBTC = trading vehicle, while BTC = buy & hold vehicle.
— Nate Geraci (@NateGeraci) April 20, 2024

Grayscale Bitcoin Mini Trust ETF Previous Application

In March, Grayscale Investments submitted an application to the U.S. Securities and Exchange Commission (SEC) to introduce a new trust called the Grayscale Bitcoin Mini Trust.

With this adjustment, investors will benefit from a less expensive fee structure than the current Grayscale Bitcoin Trust (GBTC), which manages assets exceeding $28 billion. This modification aims to alleviate one of the main concerns raised by GBTC investors – high fees relative to newer options.

Grayscale Bitcoin Mini Trust to Inch Up Demand

The high costs of investing in GBTC have been a concern since other Bitcoin ETFs, like Bitwise Bitcoin ETF and Franklin Templeton Digital Holdings Trust, charge fees as low as 0.2% and 0.19%. Once Grayscale introduces the Bitcoin Mini Trust, their offerings will be more appealing to cost-conscious investors.

At a time when the ETF industry is growing rapidly and welcoming new players, Grayscale’s Bitcoin Mini Trust proposal is put forth as an affordable alternative to their primary product. This strategy is seen as a strategic move to attract and retain investors, given the recent introduction of spot bitcoin ETFs that have intensified competition within the industry.

The concept of launching a smaller version of an investment product isn’t novel in finance, even if it’s recently emerged in the Bitcoin ETF sphere. By doing this, Grayscale aims to stay competitive with its GBTC fund without significantly altering its current fee structure.

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2024-04-21 06:29