"Grayscale's Bitcoin Mini ETF Surges to $4B in AUM"

Grayscale Bitcoin Mini Trust ETF crosses $4B in AUM

Grayscale's newest spot Bitcoin (BTC) exchange-traded fund (ETF), the Grayscale Bitcoin Mini Trust, has drawn more than $4 billion in net assets under management (AUM) within approximately six months of its launch. The asset manager announced this milestone on Feb. 6.

The Grayscale Bitcoin Mini Trust was spun out from Grayscale's older BTC fund in July 2024, separating the low-cost Mini Trust from the costlier Grayscale Bitcoin Trust (GBTC). The Mini Trust charges management fees of 0.15%, excluding promotions, which is the lowest base fee among spot cryptocurrency ETFs.

The launch of spot BTC and ETH ETFs in January and July, respectively, sparked fee wars among fund issuers vying for investor inflows. Most newly launched spot crypto ETFs temporarily waived or discounted fees, typically from six months to one year. In November, VanEck extended the fee waiver for its VanEck Bitcoin ETF in a bid to woo investors. Spot crypto ETFs generally charge shareholders between 0.15% and 0.25% of assets under management each year, while Grayscale's GBTC and ETHE charge management fees of 1.5% and 2.5%, respectively.

Grayscale also manages a suite of alternative cryptocurrency funds, some of which may also become ETFs in 2025. In January, Grayscale Investments launched an investment fund for Dogecoin (DOGE). In December, the asset manager launched two new investment funds for Lido and Optimism’s governance tokens — LDO (LDO) and OP (OP), respectively. In an Oct. 29 filing, NYSE Arca asked the US Securities and Exchange Commission for permission to list a called Grayscale Digital Large Cap Fund, which would hold a diverse portfolio of cryptocurrencies.

The rapid inflow of assets into the Grayscale Bitcoin Mini Trust reflects a growing demand for low-cost cryptocurrency investment options amidst increasing competition in the ETF market. According to Grayscale, "The success of the Mini Trusts illustrates investors’ preference for affordable funds that deliver direct exposure to Bitcoin." Grayscale's new Bitcoin ETF attracts $4 billion in six months,