Grayscale Launches Low-Cost Bitcoin Mini Trust

Grayscale announces a new, more affordable version of its Bitcoin trust, named the “Grayscale Bitcoin Mini Trust,” with a fee of only 0.15%. This launch aims to boost its standing amidst market volatility and the approaching Bitcoin halving event. Spot Bitcoin ETFs in the U.S. have started to regain investor interest, recovering from a week of net outflows to see positive inflows on Monday, April 22, 2024.

According to SoSoValue data, these ETFs collectively garnered $62 million in inflows that day. Leading the charge, the Fidelity Wise Origin Bitcoin Fund (FBTC) drew the highest inflow at $34.83 million, with other funds also showing strong performance. Despite the positive trend for most, the Grayscale Bitcoin Trust ETF (GBTC) continued to see outflows, losing about $35 million. However, spot Bitcoin ETFs experienced a net positive inflow overall, indicating a broader recovery in investor confidence.

BlackRock’s iShares Bitcoin Trust ETF (IBIT) has been particularly successful, maintaining a 69-day streak of net inflows as of April 23, 2024, and nearing a top-ten spot for the longest inflow streaks among ETFs. In April, IBIT reported an average daily inflow of $223.4 million, with a peak of $849 million. While Fidelity’s FBTC has not matched IBIT’s success, it still shows positive trends, with an average April inflow of $118 million despite days without any inflows.

Grayscale’s efforts to reverse negative trends include launching its low-cost Bitcoin Mini Trust, which significantly undercuts the fees of its main fund. This move will make Grayscale competitive against cheaper offerings from firms like BlackRock and Fidelity. The introduction of the Bitcoin Mini Trust represents Grayscale’s attempt to regain market share and attract new investment amidst stiff competition in the Bitcoin ETF arena.