Greyscale’s Bitcoin, Ether ‘mini’ ETFs generated $750M in first 3 months.
Greyscale's new Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) have generated more than $750 million in net income, the company reported on October 29.
Grayscale Bitcoin Mini Trust (BTC) and Grayscale Mini Ethereum Trust (ETH) were both listed in July after being spun off from Greyscale's old BTC and ETH funds respectively.
The July spin-off separated low-cost mini-trusts from Grayscale's older and more expensive Bitcoin and Ethereum funds — Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE).
MiniTrusts charge the lowest base fee among spot cryptocurrency ETFs, with management fees of 0.15% each, excluding promotions.
“[T]The success of BTC and ETH is an example of customer demand for lower costs. [crypto] ETPs,” John Hoffman, Grayscale's managing director and head of distribution and partnerships, said in a statement.
Grayscale's crypto ETFs. Source: Grayscale
The launch of spot BTC and ETH ETFs in January and July, respectively, has sparked a fee war among ETF issuers competing for investor returns.
Most newly launched crypto ETFs have waived or reduced fees for periods ranging from six months to a year.
Spot crypto ETFs generally charge shareholders between 0.15% and 0.25% of assets under management.
Greyscale GBTC and ETHE charge 1.5% and 2.5% management fees respectively.
Greyscale's legacy trust has seen nearly $20 billion in net outflows in the months since listing as investors seek to lock in profits or invest in lower-cost funds.
The asset manager launched GBTC and ETHE in 2013 and 2017, respectively, as unlisted fiduciaries.
The top ETF will launch in 2024. Source: ETF Store
Grayscale is the world's largest crypto fund manager, with more than $20 billion in assets under management (AUM) as of October, according to the company.
Grayscale also operates a private single-asset fund for other protocol tokens such as Aave (AAVE) and Chainlink (LINK).
Cryptocurrency funds accounted for 13 of the 2024 inflows of funds in the month of August, according to data posted by ETF Store President Investment Advisor Nate Geracchi on the X Forum.
Bitcoin has dominated the ETF landscape this year, accounting for six of the top 10 startups in 2024, Geraci told XPost.
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