Grayscale's Bitcoin Mini Trust hits $4B AUM in 6 months

Grayscale's Bitcoin Mini Trust ETF (GBTC) has quickly reached $4 billion in assets under management (AUM) within six months, as reported by the asset manager on Feb. 6. 

This growth follows the launch of the Mini Trust in July 2024, which was spun off from Grayscale's existing Bitcoin Trust (GBTC) and Ethereum Trust (ETHE).

The primary appeal of the Mini Trust lies in its significantly lower management fee of 0.15%, which excludes promotions, making it among the lowest-cost spot cryptocurrency ETFs available. 

According to Grayscale, this strategic move to separate the lower-cost Mini Trust from its older, more expensive funds has attracted substantial investor interest.

The introduction of spot Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH) ETFs in January and July, respectively, triggered a fee war among fund issuers aiming to capture investor inflows. 

Many newly launched spot crypto ETFs temporarily waived or discounted fees for a limited period.

In comparison, Grayscale's original GBTC and ETHE charge higher management fees of 1.5% and 2.5%, respectively.

The success of the Mini Trust underscores the significance of competitive fees in attracting investors to crypto ETFs.

Grayscale manages a diverse range of alternative cryptocurrency funds, with potential plans to convert some into ETFs in 2025.

Additionally, Grayscale launched an investment fund for Dogecoin in January, expanding its offerings in the memecoin space.