Greyscale’s Mini Bitcoin ETF’s ‘cheap’ fees are ‘predictable’ – analysts
Grayscale Investments announced the upcoming “mini” version of the Grayscale Bitcoin Trust (GBTC) exchange-traded fund (ETF) which will now be almost a tenth of the fees of GBTC, making it the most cost-effective option among the accepted space. Bitcoin ETFs.
However, investors should not get their hopes up just yet, says Bloomberg analyst Eric Balchunas.
“This is pro-forma financials and speculation as such,” Balchunas said in an April 20 post on X, arguing that while changes could be made before launch, the payments were intended to attract investors' attention.
“The good news is they had to pick a number for this and they decided on 15bps knowing ppl would be watching,” he wrote.
Greyscale has proposed fees for the new Greyscale Bitcoin Mini Trust (BTC) to be one-tenth of the current GBTC fee of 1.5%, according to a recent filing with the United States Securities and Exchange Commission (SEC).
With a suggested fee of 0.15%, it has the lowest ETF fee among the 11 approved spot bitcoin ETFs introduced in January, followed closely by trillion-dollar asset manager Franklin Templeton at 0.19%.
Close behind are Bitwise Bitcoin ETF (BITB) and VanEck Bitcoin Trust (HODL), both at 0.20%.
Crypto-centric reviews CEO Apollo Thomas Fahr told his 42,900X followers in a post on April 21 that grayscale was necessary to “offer cheap” alternative payments to compensate for the massive outflow of GBTC.
“Grayscale has lost 315K BTC in outflows since launch, and they had to plug the outflow,” he said.
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This comes amid more investors pulling their money out of the GBTC product since the launch of spotBitcoin ETFs in January, which offer a more competitive payout for Bitcoin exposure.
Spot Bitcoin ETFs Since GBTC was introduced on January 11, it has seen roughly $16.73 billion in outflows, according to Farside data.
Cointelegraph recently reported that shares of the new Bitcoin trust are planned to be distributed to existing GBTC shareholders, while GBTC will contribute an undisclosed amount of Bitcoin to the new trust.
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