Grayscale Announces Low-Fee Bitcoin ETF Spinoff for Investors!

Key Points:

• Grayscale announces a new Bitcoin ETF spinoff with a reduced fee of 0.15%, aiming to offer the lowest fee among spot Bitcoin ETFs.
• Shareholders of Grayscale’s GBTC can seamlessly transfer to the new fund, Bitcoin Mini Trust (BTC), without incurring capital gains tax, thanks to a 10% asset contribution.
• Grayscale’s move follows declining inflows into GBTC, contrasting with substantial gains in competitors like BlackRock’s iShares Bitcoin Trust, shaping the dynamic market landscape.

Grayscale, renowned for its spot Bitcoin ETF GBTC with a 1.5% fee, is shaking up the market with a new spinoff fund boasting a drastically reduced fee of 0.15%.

This move, announced through Grayscale’s latest filing, aims to introduce the lowest fee among all available spot Bitcoin ETFs.

The forthcoming Grayscale’s Bitcoin Mini Trust (BTC) is set to inherit 10% of GBTC’s assets, providing shareholders with a tax-free transition into the new fund, shielding them from capital gains tax liabilities.

This strategic maneuver reflects Grayscale’s response to recent market dynamics, positioning itself against the backdrop of declining inflows into GBTC over the past month. With investors flocking to lower-cost alternatives, Grayscale aims to reignite interest by offering a more competitive fee structure with BTC.

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Tax-Free Transfer to Grayscale’s Bitcoin Mini Trust

While Grayscale seeks to regain its footing in the market, competitors like Franklin Bitcoin ETF (EZBC) stand as formidable rivals, currently boasting a 0.19% fee, marginally higher than Grayscale’s new offering.

In the broader landscape, other Bitcoin ETFs have seen substantial inflows in recent weeks. BlackRock’s iShares Bitcoin Trust leads with a staggering $15 billion influx, followed by Fidelity’s FBTC with $8 billion. However, GBTC’s significant outflows of $16.7 billion in the same period have overshadowed these gains, impacting the total net inflow of spot Bitcoin ETFs.

Grayscale’s journey reflects its evolution from offering Bitcoin in a mutual fund-like product to navigating regulatory hurdles with the Securities and Exchange Commission. As U.S.-listed ETFs tracking Bitcoin gained approval, Grayscale adapted, transforming its $27 billion Grayscale Bitcoin Trust into an ETF, marking a significant milestone in its journey.