Grayscale intends to introduce a fee-effective Bitcoin ETF derivative


Mini Bitcoin ETF by Grayscale will have the lowest fee of any spot Bitcoin ETF at 0.15%.

Bitcoin Trust ETF (NYSE: GBTC), managed by Grayscale, has been losing money for more than a month and is now attempting to reverse the trend.

Spot bitcoin ETF provider Grayscale has announced the impending introduction of a new spinoff version of the fund, with a charge of only 0.15 percent, replacing the current 1.5% offering. From what we can gather from Grayscale’s most recent filing, this new charge will be the most competitive among the current pool of spot bitcoin ETFs.

The document states that Grayscale’s Bitcoin Mini Trust (BTC) would receive 10% of GBTC’s assets from Grayscale. The shareholders of GBTC will not be subject to capital gains tax when they transfer BTC to the new fund since this is considered a non-taxable event.

Grayscale, the biggest crypto asset management in the world, may be acting desperate with this move. While investors have poured money into other Bitcoin ETFs, GBTC’s hefty cost of 1.5% has stopped any inflows over the previous month. Grayscale hopes to win back the favor of investors with the launch of Bitcoin Mini Trust (BTC), a new cryptocurrency with a charge of 0.15%. At the moment, the most affordable Bitcoin exchange-traded fund is Franklin Bitcoin ETF (EZBC), which costs 0.19%.

According to Farside, the following cryptocurrency exchange-traded funds (ETFs) have seen inflows of $15 billion, $8 billion, $2.2 billion, and $1.7 billion, respectively, in the last two weeks: ARK 21Shares’ Bitcoin ETF ARK, BlackRock’s iShares Bitcoin Trust (IBIT), and Bitwise’s BITB. Other spot Bitcoin ETFs were able to attract $12 billion in net inflows, but GBTC’s $16.7 billion in two weeks of outflows overshadowed their efforts. The net inflows may have been larger if GBTC had received inflows.

In a product similar to a mutual fund, Grayscale was an early provider of Bitcoin. But the Securities and Exchange Commission has issues with this product. The $27 billion Grayscale Bitcoin Trust became an ETF when the SEC authorized U.S.-listed Bitcoin trackers.

Also Read: Swiss Bitcoin Advocates Submit a Petition Demanding the National Bank Maintain Bitcoin Reserves

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