Grayscale Investments introduced its Bitcoin Mini Trust on Wednesday, offering a cost-effective option for bitcoin exposure with an expense ratio of just 0.15%. This new product, trading under the ticker BTC on the NYSE Arca, is a spin-off of the Grayscale Bitcoin Trust (GBTC).
The Bitcoin Mini Trust will distribute new shares to existing GBTC shareholders, funded by a portion of GBTC’s bitcoin holdings. The S-1 registration statement for BTC became effective last week, as confirmed by a company press release.
“The Grayscale team has believed in Bitcoin’s transformative potential since GBTC’s initial launch in 2013, and we are excited to launch Grayscale Bitcoin Mini Trust to help further lower the barrier to accessing Bitcoin in a SEC regulated investment vehicle,” stated David LaValle, senior managing director and head of ETFs at Grayscale.
The launch comes amid growing interest in bitcoin and ether ETFs, with spot bitcoin ETFs attracting nearly $18 billion in inflows since their debut on January 11. In contrast, GBTC has seen a reduction of almost $19 billion in assets. Unlike other funds, GBTC, converted from an existing trust, charges a 1.5% fee, the highest among SEC-approved spot bitcoin products this year.
The Bitcoin Mini Trust’s significantly lower fee was highlighted by Bloomberg Senior ETF Analyst Eric Balchunas. In a post on X, he described the 0.15% fee as “crazy cheap,” noting it is about ten times less expensive than similar ETFs in other countries and vehicles. Balchunas attributed this pricing to the competitive U.S. ETF market, which he dubbed the “ETF Terrordome.”
“This is what the Terrordome does to fund costs. Come in at 1.5% and end up at 0.15%, like going from a country club to the jungle. But that’s why all the flows are here, paradise for investors,” he remarked.
As of Wednesday, Bitcoin was trading at approximately $66,350, remaining steady since the U.S. markets opened.
In addition to the Bitcoin Mini Trust, Grayscale offers two spot Ethereum ETFs: the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust (ETH). ETHE experienced outflows exceeding $1.8 billion in its first six trading days, while ETH accumulated over $181 million in the same period. The remaining seven ETFs under Grayscale have collectively attracted around $1.2 billion in inflows.
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