Grayscale’s Latest Filing Will Introduce a Mini ETF With 0.15% Fees

• Grayscale is doubling down in its pursuit of a Grayscale Bitcoin Mini Trust ETF.
• According to its filing, the firm set the Mini ETF management fees at 0.15%.
• Nate Geraci thinks Grayscale could consider further reducing the fees to 0.10%.

Grayscale is doubling down in its pursuit of a Grayscale Bitcoin Mini Trust ETF. In a recent filing , the renowned investment firm revealed its intention to set the management fee for the proposed product at 0.15%. That would make it the lowest management fee in the ETF market and provide more opportunities for investors.

Following the filing, Nate Geraci, the president of The ETF Store, termed Grayscale’s move a positive. According to Geraci, the investment firm could reduce the fees to 0.10%. Posting on X, the ETF Chief noted that Grayscale can subsidize w/GBTC revenue and pressure competitors. 

According to reports, the recent Grayscale filing with the U.S. Securities and Exchange Commission (SEC) will provide investors with a lower cost structure than the existing Grayscale Bitcoin Trust (GBTC). That would address one of the pain points voiced by GBTC investors who think the product’s current fees are high compared with the recently launched ETFs.

As a subject for comparison, investors consider GBTC’s current fee of 1.5% too high when other competitors, like Bitwise Bitcoin ETF and the Franklin Templeton Digital Holdings Trust, charge as low as 0.2% and 0.19%, respectively. Hence, a 0.15% fee would make the Grayscale Bitcoin Mini Trust ETF the most affordable product among the lot.

It is essential to note that Grayscale is taking this crucial step at a time when the ETF industry is undergoing rapid expansion with an influx of new players. Users believe the move is deliberate and aimed at drawing in investors, especially with the growing competition from the newly launched ETFs.

With the latest strategy, Grayscale aims to keep its GBTC fund competitive without significantly changing its schedule.