Grayscale’s Bitcoin ‘Mini-Me’ Trust Will Undercut Peer ETFs With Lowest Fees

After withdrawing billions of dollars over several months. Grayscale Bitcoin Trust (GBTC)Grayscale is preparing a new Bitcoin exchange-traded fund (ETF) with the lowest fees on the market.

fund manager contaminated After converting GBTC to a spot ETF last January, this product was launched in March after investors continuously repurchased GBTC. On some days, hundreds of millions of dollars were withdrawn from the fund. Although Grayscale CEO Michael Sonnenshein said the trust reach equilibrium In recent weeks.

Grayscale in updated filings with the U.S. Securities and Exchange Commission (SEC) said The fee for the new “Mini Trust” is 0.15%. This is lower than BlackRock’s iShares Bitcoin Trust (IBIT). IBIT increases the commission to 0.25% after a 12-month promotional period of 0.12%.

The filing states that 10% of GBTC’s assets will be used for small spin-off funds.

“Interesting,” Bloomberg ETF analyst Eric Balchunas wrote on Twitter. ”It’s a mini-low-fee version of $GBTC where investors in GBTC can (in my opinion) get a tax hit through special dividends. In our opinion, it’s a no-brainer.”

BlackRock’s IBIT is great success And then catch it quickly It is similar to Grayscale’s GBTC in terms of assets under management. Currently, IBIT’s assets are $17.5 billion and GBTC’s are $19.6 billion.

Previously, GBTC operated like a closed-end fund, making it difficult to cash out. But when that happens It became an ETF In January, investors either claimed profits or switched to new, cheaper products. Additionally, most of the redemptions were bankrupt cryptocurrency companies exposed to GBTC demonetization.

grayscale said decryption Earlier this month, high redemption rates were expected and there was no need to worry.

that much bitcoin price It currently stands at $66,227 per coin, up 2.5% in 7 days.

Edited by Ryan Ozawa.