Grayscale Investments has announced that the upcoming “mini” version of its Grayscale Bitcoin Trust exchange-traded fund (ETF), GBTC, will have fees that are about 10% lower than the current charges. This makes it the most affordable option among the approved spot Bitcoin ETFs on the market.
However, investors shouldn’t get their hopes up yet, according to Bloomberg analyst Eric Balchunas.
In his April 20th post on X, Balchunas stated that the financial information provided was a standard template and therefore subject to modification before implementation. He emphasized that the fees outlined were meant to pique investors’ interest.
He stated that they were required to choose a specific figure for this, aware of public scrutiny, and they went with a rate of 0.015%.
According to a recent SEC filing, Grayscale has suggested charging fees of only 0.15% (one-tenth of the existing 1.5% fee) for its new Grayscale Bitcoin Mini Trust (BTC).
Among the 11 approved bitcoin ETFs launched in January, ours has a proposed management fee of only 0.15%, making it the one with the lowest fees. Franklin Templeton’s ETF comes next at 0.19% fees.
Following behind are the Bitwise Bitcoin ETF (BITB) and VanEck Bitcoin Trust (HODL), both at 0.20%.
In a recent post on April 21st, Thomas Fahrer, the CEO of cryptocurrency review platform Apollo, addressed his 42,900 followers and explained that Grayscale had to reduce their fees to make up for the significant number of outflows from their GBTC product.
“Since its launch, Grayscale has seen a loss of approximately 315,000 Bitcoin in outflows, which required them to take action to stop the drain,” he explained.
Amid several investors pulling out funds from the GBTC product following the introduction of Bitcoin ETFs in January, this action is taken due to these new ETFs providing more affordable fees for investing in Bitcoin.
After the introduction of bitcoin Spot ETFs on January 11, there have been around $16.73 billion in withdrawals from Grayscale Bitcoin Trust (GBTC), based on Farside’s data.
Recently, CryptoMoon announced that the ownership of new Bitcoin trust shares is expected to be transferred to current GBTC shareholders. Simultaneously, GBTC is slated to provide an unspecified quantity of Bitcoin to this newly established trust.
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2024-04-21 05:08