Grayscale plans to issue mini GBTC with the industry’s lowest management fee of 0.15%! Can it attract capital inflows?

This site (120bTC.coM): Grayscale submitted an application to the U.S. Securities and Exchange Commission (SEC) last month, seeking to issue a mini version of Grayscale Bitcoin spot with lower management fees ETF "Bitcoin Mini Trust" (BTC), according to the latest estimated financial statements submitted by Grayscale, the ETF will charge a management fee of 0.15%, which is lower than all current Bitcoin spot ETFs.

Grayscale GBTC currently charges a management fee of up to 1.5% and continues to experience net outflows of funds. According to the latest documents, when the mini version of GBTC is launched, Grayscale will inject 10% of GBTC’s assets into the fund. Mini GBTC shares will be automatically issued and distributed to GBTC share holders.

Coindesk reported that the mini version of GBTC aims to provide GBTC investors with a lower management fee option. Its fees are also more competitive than other Bitcoin spot ETFs approved in January this year. Currently, the cost is the lowest The Bitcoin spot ETF is Franklin’s EZBC, which has a management fee of 0.19%.

The report mentioned that for GBTC investors, the spin-off is regarded as a tax-free event. These investors do not need to pay capital gains tax and can automatically transfer their original shares to the new fund. Early GBTC investors with thousands of times floating profits are quite advantageous. If they want to sell their original GBTC and switch to other competing products with lower management fees, they will face a considerable capital gains tax.

Bloomberg senior ETF analyst Eric Balchunas reminded that Grayscale released estimated financial statements, so the management expenses of the mini version of GBTC are only estimated hypothetical data, but the good news is that Grayscale Knowing that people are paying attention, I chose an extremely low number of 0.15%.

GBTC has had a net outflow of US$16.7 billion so far

According to SoSoValue data, since GBTC was converted into a Bitcoin spot ETF in January this year, there has been a net outflow of US$16.7 billion. Currently, there has been a net outflow of US$16.7 billion. GBTC's assets under management have dropped to approximately US$19.6 billion. Its largest competitor, BlackRock's IBIT, has so far seen a net loss of US$15.4 billion in funds, and its assets under management have grown to approximately US$17.6 billion.

If the mini version of GBTC can be launched, it is expected to restore the competitiveness of Grayscale products. Nate Geraci, president of ETFStore, said that this is a positive factor for Grayscale. Grayscale You can even consider setting the management fee of the mini version of GBTC at a lower 0.1%. He pointed out that if GBTC maintains a management fee of 1.5%, its asset size will gradually disappear over time.

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