Greyscale’s Bitcoin Mini Trust ETF tops $1B in net assets.
Greyscale's new bitcoin (BTC) exchange-traded fund (ETF) has net income of more than $1 billion by 2024, Greyscale told Cointelegraph on December 17.
Grayscale Bitcoin Mini Trust manages more than $4 billion as of December 17, Grayscale said.
In July, the asset manager launched two new ETFs – Grayscale Bitcoin Mini Trust and Grayscale Mini Ethereum Trust – out of its existing BTC and Ether (ETH) funds.
The spinoffs separate the low-cost mini-trusts from Grayscale's older and more expensive Bitcoin and Ether funds, the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE).
MiniTrusts charge the lowest base fee among spot cryptocurrency ETFs, with management fees of 0.15% each, excluding promotions.
“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, told Cointelegraph in October.
Source: Grayscale
Wars pay
The launch of spot BTC and ETH ETFs in January and July respectively has sparked a fee war between funders competing for the flow of investors.
Most newly launched crypto ETFs have waived or reduced fees for periods ranging from six months to a year.
In November, VanEck extended payouts for the VanEck Bitcoin ETF to lure investors.
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.
The Spot BTC ETF was launched in January following a lengthy review process with the Securities and Exchange Commission.
Since then, Bitcoin has dominated the ETF landscape. US spot BTC ETFs broke $100 billion in net assets for the first time in November, according to data from Bloomberg Intelligence.
Source: Vetle Lund
Beyond Bitcoin ETFs
Grayscale also manages a collection of alternative cryptocurrency funds, some of which may become ETFs by 2025.
In October, Greyscale launched an investment fund for Aave's management token AAVE (AAVE). In August, Greyscale launched three trusts to invest in Sky (formerly MakerDAO), Bittensor and Sui native protocol tokens.
In an Oct. 29 filing, NYSE Arca applied for permission to list a Grayscale index ETF called Grayscale Digital Large Cap Fund, which holds a portfolio of various cryptocurrencies.
US President-elect Donald Trump – who has vowed to turn America into the “crypto capital of the world” – is tapping crypto-friendly leaders to lead financial regulators as he begins his presidency on January 20.
In anticipation of Trump's inauguration, issuers are looking to list a variety of proposed crypto funds, including index ETFs and ETFs.
Magazine: Bitcoin's Dominance Will Fall by 2025: Benjamin Cowen, X Flame Hall
