From cointelegraph by Alex O'Donnell

Grayscale’s newest Bitcoin BTC$101,264 exchange-traded fund (ETF) pulled more than $1 billion in net inflows in 2024, Grayscale told Cointelegraph on Dec. 17. 

Grayscale Bitcoin Mini Trust manages more than $4 billion as of Dec. 17, Grayscale said.

The asset manager spun out two new ETFs — Grayscale Bitcoin Mini Trust and Grayscale Mini Ethereum Trust — from its older BTC and Ether ETH$3,674.85 funds in July. 

The spinoffs separated the low-cost Mini Trusts from Grayscale’s older and costlier Bitcoin and Ether funds, Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE).

With management fees of 0.15% each, excluding promotions, the Mini Trusts charge the lowest base fees among spot cryptocurrency ETFs.

“The success of BTC and ETH to-date is emblematic of strong client demand for low-cost [crypto] ETPs,” John Hoffman, Grayscale’s managing director and head of distribution and partnerships, told Cointelegraph in October.

Related: Fee war breaks out among spot Ether ETF issuers ahead of listings

Fee wars

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 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. 

Grayscale’s GBTC and ETHE are outliers, charging management fees of 1.5% and 2.5%, respectively. 

Spot BTC ETFs launched in January following a lengthy review process with the Securities and Exchange Commission. 

Since then, Bitcoin has dominated the ETF landscape. United States spot BTC ETFs broke $100 billion in net assets for the first time in November, according to data from Bloomberg Intelligence.

Beyond Bitcoin ETFs

Grayscale also manages a suite of alternative cryptocurrency funds as well, some of which may also become ETFs in 2025. 

In October, Grayscale launched an investment fund for Aave’s governance token, AAVE AAVE$337.26. In August, Grayscale launched three trusts to invest in the native protocol tokens of Sky (previously MakerDAO), Bittensor and Sui, respectively.

In an Oct. 29 filing, NYSE Arca asked the SEC for permission to list a proposed Grayscale index ETF called Grayscale Digital Large Cap Fund, which would hold a diverse portfolio of cryptocurrencies.

US President-elect Donald Trump — who has promised to turn the US into the “world’s crypto capital” — is tapping crypto-friendly leaders to head financial regulators when he begins his presidential term on Jan. 20.

In anticipation of Trump’s tenure, issuers are seeking to list a variety of proposed crypto funds, including index ETFs and ETFs offering staking.