Grayscale’s Mini Bitcoin ETF fees as analysts question their affordability and validity. The Mini Bitcoin Exchange Traded Fund (ETF) of Grayscale will have ten times lower fees than Grayscale Bitcoin Trust (GBTCs), but Eric Balchunas, the ETF analyst at Bloomberg, advises the investors to be careful before jumping in and getting overly excited.
They announced their new “mini” version of the Grayscale Bitcoin Trust (GBTC) ETF will have nearly 10 times lower fees than GBTCs. It can make it a more affordable choice among approved spot Bitcoin ETFs.
Moreover, Bloomberg’s analyst suggest that investors hold off on getting too optimistic at the moment.
“This is pro-forma financials and, as such, hypothetical,” Balchunas explained in an April 20 post on X, arguing that while changes are possible before launch, the fees were intended to catch investors’ attention.
“The good news is they had to pick a number for this and knew ppl would be watching and they decided on 15bps,” he wrote.
According to a recent filing with the Securities and Exchange Commission (SEC), Grayscale plans to charge much lower fees for its new Grayscale Mini Bitcoin ETF.
Mini Bitcoin ETF Fee Comparison: Grayscale vs. Franklin Templeton
Grayscale proposed a fee of 0.15%, which would make it the lowest among approved 11 spot Bitcoin ETFs in January. Another big assed manager, Franklin Templeton, is close behind at 0.19%.
Others, like VanEck Bitcoin (HODL) and Bitwise Bitcoin ETF (BTTB), have slightly higher fees at 0.20%.
The CEO of Apollo Thomas Fahrer, a crypto reviews site, told his followers on X that Grayscale’s offering cheaper fees is important due to the number of people moving their money out of GBTC.
“Grayscale has lost 315K BTC in outflows since launching, and they needed to plug the leak,” he said.
Most people are taking money out of GBTC because they get lower exposure to Bitcoin through new spot Bitcoin ETFs, which were introduced in early January.
According to Farsede data, these 11 spot Bitcoin ETFs came out in January 2024, GBTC lost about $16.73 billion as investors pulled their money out.
Cointelegraph recently said that shares of the new Bitcoin trust will go to current GBTC shareholders, and GBTC will also give some Bitcoin to the new trust, although they didn’t say how much.
