Grayscale's Bitcoin Mini Trust, a mini version of the GBTC ETF, has launched management fees that are much more attractive than GBTC.
Grayscale's "mini GBTC" Bitcoin ETF charges just 0.15%
Grayscale is a cryptocurrency asset management company founded in 2013 and headquartered in New York, United States. Unlike the other 9 ETF funds from BlackRock or Fidelity that were completely newly launched, Grayscale's ETF was converted from one of the company's key products, Grayscale Bitcoin Trust (GBTC) and was approved by the SEC. upgrade” to become a Bitcoin ETF inJanuary 2024 .
Registered in early March 2024 , Bitcoin Mini Trust is a small branch of the GBTC fund, the shares of the mini fund will be distributed to GBTC shareholders when the parent fund contributes a certain amount of Bitcoin to the trust fund. children with low fees and no taxes for shareholders. Shares will be automatically distributed to shareholders from the date of closing the list.
Grayscale's new financial filing has revealed the latest details about their mini fund called Bitcoin Mini Trust. The company said it will list on NYSE Arca, one of the world's largest exchanges, with an annual management fee of only 0.15%.
Wow, $GBTC's mini-me $ BTC will have a fee of 15bps, which means Grayscale will have the cheapest BTC ETF in the market🔥🔥 https://t.co/pGH9rPvp70
— Eric Balchunas (@EricBalchunas) April 20, 2024
Since being approved as a Bitcoin ETF on January 10, 2024, the GBTC fund's 1.5% asset management fee has always been controversial, 6-7 times higher than other competitors such as BlackRock (0 .3%), Ark Invest (0.25%), Bitwise (0.24%),...
Bitcoin spot ETFs have been approved by the SEC. Source: Bloomberg (January 11, 2024)
The Mini Trust's 0.15% management fee marks the lowest in the industry, not including fee waivers and some other perks of each fund, and is up to 10 times lower than GBTC's fees.
Also according to its latest financial report, Grayscale plans to contribute 63,620 Bitcoin to the fund's initial distribution, or 10% of GBTC's total Bitcoin holdings at the beginning of the year, valued at nearly $4 billion at the beginning of the year. current time. According to the preliminary filing, both trusts will then trade independently and not Chia risk.
In the event that GBTC's trust is established today - April 21, the $4 billion in assets held by the parent fund would make the child fund the fourth largest spot Bitcoin ETF by AUM, after Fidelity's FBTC and BlackRock's IBIT. At the same time, the Mini Trust fund is forecast to be the ETF leading the inflow rankings into ETF funds thanks to GBTC disbursement.
The amount of BTC being held by Bitcoin spot ETFs. Source: The Block (April 20, 2024)
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