The world's leading digital asset management company, Grayscale has just announced plans to launch Bitcoin Mini Trust (BTC), a Bitcoin ETF with a competitive management fee of only 0.15%. This is considered a move to attract investors and increase competition for the flagship product Grayscale Bitcoin Trust (GBTC), which is currently subject to the highest fee in the market at 1.5%.
To form BTC, Grayscale will fork 10% of assets from GBTC. GBTC shareholders will automatically receive corresponding shares in the new fund without capital gains tax. This is especially beneficial for investors who hold GBTC at an early stage, helping them avoid significant taxes when switching to other products.
Bitcoin Mini Trust was born to meet investor demand for a low-cost Bitcoin investment option, comparable to other Bitcoin ETFs approved earlier this year. Currently, Franklin Bitcoin ETF (EZBC) holds the position of the Bitcoin ETF with the lowest fees at 0.19%.
GBTC, Grayscale's first product, was launched more than a decade ago and was officially listed on NYSE Arca as a Bitcoin spot ETF in January 2024. Despite facing stiff competition from rivals such as BlackRock and Fidelity, Grayscale still leads the market with approximately $19.6 billion in assets under management.
