Grayscale Investments has launched a new Bitcoin exchange-traded fund (ETF) with the lowest fee structure in the United States. The Grayscale Bitcoin Mini Trust, known by the ticker “BTC,” started trading on Wednesday on NYSE Arca.
It has a competitive fee of 0.15%, the lowest amongst all spot Bitcoin ETFs.
Grayscale Bitcoin Mini Trust Debuts on NYSE Arca
This strategic launch of the mini-trust format provides a fresh investment avenue for Bitcoin ETF investors. This new trust aims to distribute shares to existing Grayscale Bitcoin Trust (GBTC) shareholders by reallocating a portion of Bitcoin from the older fund to the mini version.
“Grayscale converted 10% of their Bitcoin ETF AUM into their new Bitcoin Mini Trust according to onchain flows,” analyst Hildobby said.
Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach
Furthermore, Grayscale has adopted this mini-fund approach for its Ethereum offering as well. In fact, this month, the US Securities and Exchange Commission (SEC) approved the Grayscale Ethereum Mini Trust (ETH), which will also soon start trading on NYSE Arca.
Both the mini versions of the Bitcoin and Ethereum products now trade under a more competitive fee structure. This approach is designed to attract investors who prioritize investment efficiency.
“The Grayscale team is committed to meeting the growing investor and market demand for Bitcoin by expanding its suite of Bitcoin-related investment vehicles. With an expense ratio of just 0.15%, BTC presents investors with the most cost-effective option for Bitcoin exposure. Ultimately, we recognize that different investors have different needs based on their specific investing strategies, and the firm is excited about the opportunity to engage with investors at any stage of their Bitcoin investing journey,” Grayscale spokesperson told BeInCrypto.
This move comes as the Grayscale Bitcoin Trust has experienced significant shifts, including a notable $19 billion outflow since its transition to an ETF. The outflows were mainly due to GBTC’s high fees. It charged 1.5% in fees, around 10 times higher than its competitors.
“ETFs are meant to offer minimum tracking error at the best price possible. Since their inability to generate alpha or staking rewards on the inventory, we will assist the typical ‘race to the bottom war’, which, ultimately, is good news for actual and prospective investors. We see a space where, unlike traditional asset management, an active management approach can generate excess returns through a dynamic allocation and access to passive yield sourced from network validation strategies,” Nuno Serafim, Managing Partner at 3 Comma Capital, shared with BeInCrypto.
Read more: Crypto ETN vs. Crypto ETF: What Is the Difference?
Consequently, BlackRock’s iShares Bitcoin Trust overtook GBTC to become the largest Bitcoin ETF.
“The timing is also excellent for investors. We have a Federal Reserve that is about to cut rates. Crypto has become an important topic in the US presidential election,” Zach Pandl, head of research at Grayscale, said.
The US Bitcoin ETFs have grown swiftly since their inception in January. So far, they have witnessed $17.69 billion in net inflows. This influx highlights growing confidence in crypto as a viable investment class.
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