Grayscale Investments has announced that its upcoming “mini” version of the Grayscale Bitcoin Trust (GBTC) exchange-traded fund (ETF) will feature significantly lower fees compared to GBTC, positioning it as the most cost-effective option among approved spot Bitcoin ETFs.
According to a recent filing with the United States Securities and Exchange Commission (SEC), Grayscale has proposed fees for the Grayscale Bitcoin Mini Trust (BTC) to be set at 0.15%, which is one-tenth of the current 1.5% fee for GBTC.
With this fee structure, Grayscale aims to offer the lowest fees among the 11 approved spot Bitcoin ETFs introduced in January. This move is seen as a strategic response to the growing competition in the market.
Bloomberg analyst Eric Balchunas cautioned investors not to set high expectations yet, emphasizing that the proposed fees are hypothetical and subject to change before the ETF’s launch. However, he acknowledged that the chosen fee of 0.15% was intended to attract investors’ attention.
Thomas Fahrer, CEO of crypto-focused reviews portal Apollo, highlighted the necessity for Grayscale to offer lower fees to compensate for significant outflows from GBTC since the launch of spot Bitcoin ETFs in January. This move is crucial for Grayscale to retain investors and remain competitive in the market.
Since the introduction of spot Bitcoin ETFs on Jan. 11, GBTC has experienced approximately $16.73 billion in outflows, indicating a preference among investors for ETFs with lower fees.
Shares of the new Bitcoin trust are planned to be distributed to existing GBTC shareholders, with GBTC also contributing an undisclosed amount of Bitcoin to the new trust. This strategic move aims to enhance the appeal of the new ETF and attract investors.
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