Summary:
Grayscale's Bitcoin Mini Trust launched with a 0.15% expense ratio.
The trust is a spin-off of the Grayscale Bitcoin Trust (GBTC).
The launch comes amid a surge in ETF interest in Bitcoin and Ether.
$18 billion in inflows for spot Bitcoin ETFs since January 11.
The Mini Trust's fee is about ten times cheaper than international competitors.
Grayscale's New Bitcoin Mini Trust ETF
Grayscale Investments has officially launched its Bitcoin Mini Trust, which began trading on Wednesday with an expense ratio of just 0.15%. This new product provides investors with a low-cost option for gaining exposure to Bitcoin in the market.
The Mini Trust, identified by the ticker BTC, is a spin-off of the existing Grayscale Bitcoin Trust (GBTC). Shares will be allocated to current GBTC shareholders, with the trust contributing a portion of its Bitcoin holdings to the new ETF. As noted in a recent press release, BTC's S-1 registration statement was approved just last week.
David LaValle, senior managing director and head of ETFs at Grayscale, expressed enthusiasm about the launch, stating, "The Grayscale team has believed in Bitcoin's transformative potential since GBTC’s initial launch in 2013. We are excited to launch Grayscale Bitcoin Mini Trust to help further lower the barrier to accessing Bitcoin in a SEC regulated investment vehicle."
Market Context
The introduction of the Bitcoin Mini Trust comes at a time of heightened interest in ETFs related to the two largest cryptocurrencies by market capitalization, Bitcoin and Ether. Since the launch of the first spot Bitcoin ETFs on January 11, the market has seen nearly $18 billion in inflows, despite GBTC experiencing a loss of almost $19 billion in assets.
Unlike other funds, which typically charge higher fees, the Mini Trust stands out with its category-low fee. Bloomberg Senior ETF Analyst Eric Balchunas highlighted this pricing strategy, noting that it is about ten times cheaper than spot ETFs in other countries, emphasizing the competitive landscape of the U.S. ETF market, which he referred to as the “ETF Terrordome.”
“This is what the Terrordome does to fund [cost]. Come in at 1.5% [and] end up at 0.15%, like going from [a] country club to the jungle. But that's why all the flows are here, paradise for investors,” he remarked.
Current Bitcoin Value
As of now, Bitcoin is trading at approximately $66,350, remaining stable since the U.S. markets opened on Wednesday. Grayscale also manages two spot Ethereum ETFs, the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (ETH), both of which have seen considerable activity in recent trading days.
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