Originally published on: October 29, 2024
Grayscale, one of the leading cryptocurrency fund managers, reported that their new Bitcoin and Ethereum exchange-traded funds (ETFs) have already pulled in over $750 million in net inflows within the first three months of their launch. The Grayscale Bitcoin Mini Trust (BTC) and Grayscale Mini Ethereum Trust (ETH) were introduced in July as spinoffs from Grayscale’s older BTC and ETH funds.
These new Mini Trusts offer low-cost investment options compared to Grayscale’s older Bitcoin Trust (GBTC) and Ethereum Trust (ETHE), with management fees as low as 0.15% each. This competitive fee structure has caught the attention of investors looking for cost-effective exposure to the cryptocurrency market.
John Hoffman, Grayscale’s managing director, expressed that the success of BTC and ETH reflects the growing demand for affordable cryptocurrency ETFs among clients. The launch of spot BTC and ETH ETFs earlier this year has led to a competition among issuers to attract investor inflows by offering discounted or waived fees.
While most spot crypto ETFs charge between 0.15% and 0.25% in management fees annually, Grayscale’s legacy trusts, GBTC and ETHE, stand out with fees of 1.5% and 2.5%, respectively. Despite this, investors have shown a significant interest in the new Mini Trusts, leading to substantial inflows and positioning Grayscale as a key player in the crypto investment space.
With over $20 billion in assets under management, Grayscale remains a dominant force in the cryptocurrency fund management industry. The company also manages private single-asset funds for various protocol tokens, expanding its reach in the market.
In a year that has seen the rise of cryptocurrency ETFs, Grayscale’s Bitcoin and Ethereum Mini ETFs have made a strong impression, attracting substantial investments and solidifying Grayscale’s reputation as a top choice for crypto investors.
