Grayscale will offer a spot BTC ETF with the lowest management fee

At 1,5%, Grayscale’s GBTC fees are currently the highest in the bitcoin fund segment

22.04.2024 - 10:40

3 min

What’s new? Grayscale, an investment company that manages the GBTC spot bitcoin exchange-traded fund (ETF) with a 1,5% fee, will launch an additional version of the product called Bitcoin Mini Trust (BTC Trust) with fees of 0,15%. As noted by Bloomberg analyst Eric Balchunas, the new product’s fees will be the lowest among spot bitcoin funds currently available in the United States.

Source: Twitter.com

What else is known? According to a filing for the US Securities and Exchange Commission (SEC), Grayscale will transfer 10% of GBTC’s $19,57 billion in assets under management to the new BTC Trust. Upon issuance, BTC Trust shares will automatically be distributed to GBTC share holders.

The launch of Bitcoin Mini Trust is intended to offer GBTC investors a cheaper and more competitive product. Currently, the lowest fee is requested by the BTC ETF from Franklin Templeton (ticker EZBC), at 0,19%.

GBTC from Grayscale came into existence over a decade ago, it was originally a bitcoin trust and offered through a private placement. In mid-2015, the shares began trading publicly on an over-the-counter (OTC) basis. In January this year, it was converted to a spot BTC ETF, as the SEC approved such products, and began trading on NYSE Arca.

Along with GBTC, several similar products from investment companies BlackRock, Fidelity, Bitwise, ARK Invest, and others appeared on the bitcoin fund market. After the start of trading on January 11, GBTC has faced an outflow of funds, which has now reached $16,73 billion.

BTC volume under GBTC management has fallen by 50% in three months

So far, the fund retains its leading position in terms of the volume of savings

GBTC still remains the largest bitcoin fund in terms of assets under management, but it is already being overtaken by BlackRock’s IBIT ($17,58 billion). The latter has been steadily showing inflows of funds, reaching $15,42 billion in just over three months.

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