Grayscale Announces 0.15% Fee Structure for New Bitcoin Mini Trust ETF

Grayscale, a Bitcoin ETF provider, has announced the creation of its new Bitcoin Mini Trust (BTC) which will feature a lower management fee of 0.15%, in contrast to its existing GBTC product that charges 1.5%. 

The recent filing revealed that Grayscale will allocate approximately 63,204 Bitcoins, representing 10% of GBTC's current assets, to the new mini fund. 

The shares of the Bitcoin trust will be automatically distributed to existing GBTC shareholders, an event that will not be taxable for these investors.

The Bitcoin Mini Trust aims to offer a more competitively priced option within the Bitcoin ETF market, aligning its fees with other similar products approved earlier in January. 

Originally, GBTC began as a private placement over a decade ago and transitioned to public trading in mid-2015 on an over-the-counter basis. It was only in January 2024 that GBTC was uplisted to NYSE Arca as a spot Bitcoin ETF.

Grayscale manages approximately $19.6 billion in assets, with its closest competitor, BlackRock's IBIT fund, managing just over $17.5 billion. 

The spin-off of the Bitcoin Mini Trust is designed to provide a lower fee alternative for investors, particularly benefiting those early GBTC investors who would otherwise face significant tax implications if they switched to a competing product.