YEREVAN (CoinChapter.com) — The Grayscale Bitcoin Mini Trust has exceeded $1 billion in net inflows in 2024, according to the company’s report on Dec. 17. The trust now manages assets worth $4 billion, highlighting a steady interest in low-cost cryptocurrency investment options.
Source: Grayscale Low-Cost Crypto Funds Drive Investor Interest
In July, Grayscale introduced the Bitcoin Mini Trust and Ethereum Mini Trust as alternatives to its higher-cost products, such as the Grayscale Bitcoin Trust (GBTC) and Ethereum Trust (ETHE).
The Grayscale Bitcoin Mini Trust charges a management fee of 0.15%, significantly lower than the 1.5% and 2.5% fees for GBTC and ETHE, respectively. This adjustment aims to cater to investors seeking low-cost cryptocurrency ETFs.
John Hoffman, Grayscale’s managing director, stated in October that the success of low-cost funds like BTC and ETH reflects growing demand for accessible exchange-traded products (ETPs).
Bitcoin ETF Inflows Highlight Competitive Market
The launch of spot Bitcoin ETFs earlier in 2024 triggered significant activity in the crypto investment space. U.S.-based Bitcoin ETFs collectively crossed $100 billion in assets by November, according to Bloomberg Intelligence.
Bitcoin ETFs Surpass U.S. Gold ETFs in AUM. Source: K33 Research
Many ETF providers have engaged in fee reductions to attract investors. For instance, VanEck extended its fee waiver for its VanEck Bitcoin ETF (HODL) in November. The typical fee for cryptocurrency ETFs ranges between 0.15% and 0.25% annually, with Grayscale’s Mini Trusts at the lower end of this spectrum.
VanEck Fee Waiver Extended for HODL Bitcoin ETF. Source: VanEck Grayscale’s Broader Expansion in Cryptocurrency ETFs
Beyond Bitcoin ETFs, Grayscale manages funds for alternative cryptocurrencies. In October, the company launched an investment fund for Aave’s governance token, while in August, it introduced funds for tokens like Sky, Bittensor, and Sui.
Additionally, Grayscale has filed for SEC approval to list a new index ETF. The Grayscale Digital Large Cap Fund, proposed in an Oct. 29 filing, aims to hold a diversified portfolio of cryptocurrencies.
Regulatory Environment Signals Industry Growth
Anticipating a crypto-friendly regulatory landscape, several issuers are preparing to introduce new cryptocurrency ETFs. With President-elect Donald Trump set to take office in January 2025, efforts to secure SEC approval for additional crypto funds have intensified.
Trump has indicated plans to position the U.S. as a global leader in cryptocurrency. As part of this effort, regulators may see leadership from crypto-friendly appointees, paving the way for further developments in the cryptocurrency ETF market.
