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

Grayscale Bitcoin Mini Trust ETF will likely set its fee at 0.15%, making it the lowest in the market. The move, which has garnered immense traction from investors, will likely result in Grayscale getting a good hold of the market.

Grayscale Bitcoin Mini Trust ETF Set to Have Lowest Fee

The most recent filing Grayscale made with the US Securities and Exchange Commission (SEC) states that the business intends to introduce its Grayscale Bitcoin Mini Trust with a 0.15% management fee. Nate Geraci, the president of The ETF Store termed the move a positive, further saying that the firm could even consider keeping it at 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. pic.twitter.com/RMXbwK1f0Y

— Nate Geraci (@NateGeraci) April 20, 2024

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Grayscale Bitcoin Mini Trust ETF Previous Application

Grayscale Investments had formally applied to the U.S. Securities and Exchange Commission (SEC) for permission to launch a new investment vehicle called the Grayscale Bitcoin Mini Trust back in March.

This change would provide investors with a lower cost structure than its present Grayscale Bitcoin Trust (GBTC), which is in the range of assets worth over $28 billion. This strategy approach addresses one of the key grievances voiced by GBTC investors, which was about the high fees compared to newcomers.

Grayscale Bitcoin Mini Trust to Inch Up Demand

The exorbitant fees of GBTC have been problematic as rival ETFs, such as the Bitwise Bitcoin ETF and the Franklin Templeton Digital Holdings Trust, have expenses as low as 0.2% and 0.19%, respectively. When Grayscale launches the Bitcoin Mini Trust, its products will become more competitive and attractive to investors who value affordability.

Grayscale’s Bitcoin Mini Trust proposal is being made at a time when the ETF industry is expanding quickly and is seeing a surge in new players. This tactic, which offers a less costly substitute for the business’s main offering, is perceived as a deliberate effort to draw in and keep investors. This is particularly crucial because the recent launch of spot bitcoin ETFs has increased competition in the industry.

The idea of offering a “mini” version of an investment product is not new to the financial world, despite its introduction to the Bitcoin ETF market. By adopting this strategy, Grayscale hopes to keep its GBTC fund competitive without making major changes to the fund’s present fee schedule.

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