Summary
Grayscale is launching a new Bitcoin exchange-traded fund (ETF) with the lowest fees on the market after experiencing billions of dollars in withdrawals from its long-running Grayscale Bitcoin Trust. The new “Mini Trust” will have fees of 0.15% and 10% of GBTC assets will be used for the smaller spinoff fund. BlackRock’s iShares Bitcoin Trust (IBIT) is also successful with $17.5 billion in assets. The high rate of redemptions from GBTC was expected and the price of Bitcoin is now at $66,227 per coin.
Key Points
1. Grayscale is preparing to launch a new Bitcoin exchange-traded fund (ETF) with the lowest fees on the market after experiencing significant withdrawals from its Grayscale Bitcoin Trust (GBTC).
2. The new “Mini Trust” will have fees of 0.15%, lower than other competing products like BlackRock’s iShares Bitcoin Trust, which will increase its fees to 0.25% after a promotional period.
3. The launch of the new fund is seen as a strategic move to retain investors who have been redeeming their holdings from GBTC, which recently converted to a spot ETF.