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Grayscale Sets 0.15% Fee for Mini Bitcoin ETF Spinoff - the Lowest Among Peers

GBTC holders can jump into Grayscale's Bitcoin Mini Trust (BTC) tax free

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Grayscale has revealed that a 0.15% fee will be offered for its spinoff fund, the Bitcoin Mini Trust (BTC).

Grayscale's Bitcoin Trust (GBTC) is the current leader in terms of AUM among its Bitcoin ETF peers but also has the highest fee of 1.5%.

Grayscale's Bitcoin Mini Trust will offer the lowest fee, undercutting Franklin Templeton's EZBC fee of 0.19%.

The company will contribute 10% of GBTC's assets to the new BTC trust. Shares of the new fund will be issued and distributed automatically to GBTC holders.

BTC is also non-taxable for GBTC's existing shareholders, allowing investors to skip capital-gains taxes to transfer to the new fund. Early GBTC investors are taxed to switch to competitors.

Although GBTC is the leader in the crypto ETF field with AUM of over $24 billion, its outflows hit $1.6 billion ahead of Bitcoin halving last week.

BlackRock's IBIT, the second largest Bitcoin ETF offering, broke records earlier this last month by reaching $10 billion faster than any US ETF in history. The fund reached the milestone in under two months from 11 January when the SEC greenlit Bitcoin ETFs. Invesco QQQ previously held the record of just over a year.

IBIT also set another record by smashing through its daily trading volume, trading 99.3 million shares over the day, amassing $3.9 billion in volume. Its previous record was $3.7 billion on 5 March. The fund also set a net inflow daily record of $849 million on 12 March. GBTC's lead continues to shrink as IBIT's AUM surpasses $17.5 billion.

Hong Kong only approved Bitcoin ETFs last week and could launch the products as soon as this month.

OSL told The Block that the Chinese firms that received the green light for Bitcoin ETFs in Hong Kong, such as China Asset Management, HashKey Capital Limited and Harvest Global Investments, might debut their products in April.

OSL Says Hong Kong Bitcoin ETFs Could Debut This Month
OSL revealed that Bitcoin ETFs in Hong Kong could start in late April and Ethereum ETFs “shortly after”