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Grayscale Reduces Fees for its Bitcoin Spot ETF

Grayscale Reduces Fees for its Bitcoin Spot ETF:

  • Grayscale lowers management fees from 2% to 1.5% for its proposed Bitcoin ETF.
  • The asset management firm adds authorized participants such as Jane Street and Virtu.
  • The fees were adjusted after a thorough study of similar products and Bitcoin-based ETFs worldwide.

Grayscale Reduces Fees for its Bitcoin Spot ETF

In a recent amendment to its S3 filing, Grayscale, one of the largest asset managers in the world, has decided to reduce its management fees for its Bitcoin Spot ETF from 2% to 1.5%.

As a reminder, Grayscale aims to convert its current Bitcoin vehicle, the Grayscale Bitcoin Trust or “GBTC,” into a spot ETF.

In addition, Grayscale has also included new authorized participants (AP), such as Jane Street, Virtu, Macquarie Capital, and ABN AMRO Clearing, in its filing.

A “War of Fees” Among ETF Applicants

In an interview, Michael Sonnenshein, CEO of Grayscale Investments, explained the logic behind the fee adjustment. According to him, this decision was made after an analysis of fees charged by similar products globally, including spot and futures-based ETFs.

“We conducted extensive research to evaluate the offering fees of similar products, including cash and futures ETFs in geographies around the world that have already opened access to Bitcoin via the ETF wrapper.”

stated Michael Sonnenshein

Sonnenshein emphasized that this study helped Grayscale position its ETF more effectively in a competitive market.

By comparison, other market players like BlackRock have announced initial fees of 0.20%, while Ark 21Shares will not apply any management fees for the first 6 months, and then transition to 0.25%.

This indicates a trend of a “fee war” among new ETF issuers in the United States, with each seeking to attract investors by offering competitive fees.

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