Grayscale Launched the Lowest-Fee Bitcoin ETF in the U.S.

Grayscale Investments has launched a new Bitcoin ETF, the Grayscale Bitcoin Mini Trust, which began trading on NYSE Arca under the ticker "BTC" this Wednesday.

This fund stands out for its exceptionally low fee of 0.15%, the lowest among all spot Bitcoin ETFs in the U.S.

The introduction of this mini-trust offers a fresh investment option, reallocating Bitcoin from Grayscale’s existing Bitcoin Trust to provide shares to current GBTC investors. This move is part of Grayscale’s broader strategy to enhance investment efficiency.

Additionally, Grayscale is applying a similar approach to Ethereum with the recently approved Grayscale Ethereum Mini Trust, also set to debut on NYSE Arca.

This new fee structure aims to attract investors following significant outflows from the higher-fee Grayscale Bitcoin Trust, which saw $19 billion leave due to its previous 1.5% fee. BlackRock’s iShares Bitcoin Trust has since surpassed GBTC as the largest Bitcoin ETF.

Zach Pandl of Grayscale emphasized that the launch aligns well with upcoming Federal Reserve rate cuts and increasing political focus on cryptocurrencies. The Bitcoin ETF market has seen rapid growth, with $17.69 billion in net inflows since January, indicating strong investor interest in digital assets.