Grayscale Launches Bitcoin Spot ETF in US, Attracting Investors with Low Fee
Grayscale Investments is set to introduce a Bitcoin spot ETF in the US, aiming to attract investors with a competitive expense ratio of just 0.15 percent. This new offering, the Grayscale Bitcoin Mini ETF, is poised to become the fourth largest in the US upon approval, with over 63,000 BTC.
The new ETF is expected to draw capital of approximately $1 billion, thanks to its low management fee. This is a significant shift from Grayscale's existing Bitcoin Trust (GBTC), which has been losing assets due to its high expense ratio of 1.5 percent. GBTC now holds only 304,000 BTC, less than half of what it held at the time of ETF approval.
The Grayscale Bitcoin Mini ETF aims to attract GBTC holders by offering a tax-efficient conversion option. Investors can convert their GBTC shares to the new ETF without incurring capital gains tax. This move is part of Grayscale's strategy to make Bitcoin investing more accessible and affordable. Upon launch, the Grayscale Bitcoin Mini Trust will be the cheapest Bitcoin spot ETF in the US, undercutting the current cheapest ETF (EZBC) at 0.19 percent.
Grayscale's new Bitcoin Mini ETF is set to reshape the Bitcoin ETF landscape in the US. With a low expense ratio and tax-efficient conversion options, it aims to attract both new and existing investors. The transfer of over 63,000 BTC from GBTC to the new ETF signals Grayscale's commitment to this new, more accessible investment vehicle.
