Grayscale Bitcoin Mini Trust ETF sees $1B in net inflows

Grayscale’s Bitcoin Mini Trust ETF surpassed $1 billion in net inflows in 2024, according to the company’s December 17.

The fund now manages over $4 billion in assets.

This ETF is a recent spinoff from Grayscale’s older Bitcoin Trust, which has higher fees.

The Bitcoin Mini Trust, along with the Grayscale Mini Ethereum Trust, was launched in July 2024 to provide a low-cost alternative to the previous Bitcoin and Ether funds, Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE).

With a management fee of just 0.15%, the Mini Trust ETFs offer the lowest base fees among spot cryptocurrency ETFs.

John Hoffman, Grayscale’s managing director, shared in October that the success of both Bitcoin and Ethereum to date demonstrates strong demand for low-cost crypto exchange-traded products (ETPs).

“The success of BTC and ETH to-date is emblematic of strong client demand for low-cost [crypto] ETPs,” Hoffman said.

Grayscale’s move aligns with a growing trend in the ETF market where competition for investor inflows has led to fee reductions.

The launch of spot BTC (CRYPTO:BTC) and ETH (CRYPTO:ETH) ETFs earlier in 2024 triggered a fee war, with several fund issuers offering temporary fee waivers or discounts.

In November, VanEck extended a fee waiver for its Bitcoin ETF to attract investors.

Typically, spot crypto ETFs charge between 0.15% and 0.25% of assets under management annually.

In contrast, Grayscale’s GBTC and ETHE charge management fees of 1.5% and 2.5%, respectively.

In addition to its Bitcoin and Ethereum products, Grayscale is also launching a variety of alternative cryptocurrency funds, with more potentially becoming ETFs in 2025.

Grayscale’s filing with NYSE Arca includes a proposal for the Grayscale Digital Large Cap Fund, a diversified crypto index ETF.

At the time of reporting, the price of Bitcoin (BTC) was $101,301.