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Grayscale’s new ETF offers low fees compared to peers, including its legacy spot BTC fund.
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Grayscale’s newest spot Bitcoin (BTC) exchange-traded fund (ETF) has drawn more than $4 billion in net assets, the asset manager said on Feb. 6.
Grayscale Bitcoin Mini Trust attained its $4 billion in assets under management (AUM) within approximately six months of launching, Grayscale said in a post on the X platform.
In July 2024, the asset manager spun out two new ETFs — Grayscale Bitcoin Mini Trust and Grayscale Mini Ethereum Trust — from its older BTC and Ether (ETH) funds.
The spinoffs separated the low-cost Mini Trusts from Grayscale’s older and costlier Bitcoin and Ether funds, Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE), respectively.
With management fees of 0.15% each, excluding promotions, the Mini Trusts charge the lowest base fees among spot cryptocurrency ETFs.
Source: Grayscale
Related: Grayscale launches Bitcoin Miners ETF to offer BTC mining exposure
Competitive fees
The launch of spot BTC and ETH ETFs in January and July, respectively, sparked fee wars among fund issuers vying for investor inflows.
Most newly launched spot crypto ETFs temporarily waived or discounted fees, typically from six months to one year.
In November, VanEck extended the fee waiver for its VanEck Bitcoin ETF in a bid to woo investors.
Spot crypto ETFs generally charge shareholders between 0.15% and 0.25% of assets under management each year.
Grayscale’s GBTC and ETHE are outliers, charging management fees of 1.5% and 2.5%, respectively.
Expanding product suite
Grayscale also manages a suite of alternative cryptocurrency funds as well, some of which may also become ETFs in 2025.
In January, Grayscale Investments launched an investment fund for Dogecoin (DOGE), the most popular memecoin by market capitalization.
In December, the asset manager launched two new investment funds for Lido and Optimism’s governance tokens — LDO (LDO) and OP (OP), respectively.
In an Oct. 29 filing, NYSE Arca asked the US Securities and Exchange Commission for permission to list a proposed Grayscale index ETF called Grayscale Digital Large Cap Fund, which would hold a diverse portfolio of cryptocurrencies.
Magazine: Memecoins: Betrayal of crypto’s ideals… or its true purpose?
This article first appeared at Cointelegraph.com News
