Grayscale’s Bitcoin Mini Trust ETF Surpasses $1 Billion in Net Inflows

In a significant development, Grayscale’s newest Bitcoin (BTC) exchange-traded fund (ETF), the Grayscale Bitcoin Mini Trust, has seen over $1 billion in net inflows in 2024. This information was revealed by Grayscale to Cointelegraph on December 17.

Grayscale Bitcoin Mini Trust Reaches Over $4 Billion in Assets

As of December 17, the Grayscale Bitcoin Mini Trust manages an impressive amount of over $4 billion. According to Grayscale, this trust has seen substantial growth since its inception.

Background on the Spin-Offs

In July, Grayscale spun off two new ETFs: the Grayscale Bitcoin Mini Trust and the Grayscale Mini Ethereum Trust (ETH). These spin-offs were created from Grayscale’s older BTC and ETH funds, specifically the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE).

Low-Cost Funds with Competitive Fees

The management fees for the new Mini Trusts are set at 0.15% each, excluding promotions. This makes them one of the lowest-cost base fee funds among spot cryptocurrency ETFs.

In an interview with Cointelegraph in October, John Hoffman, Grayscale’s managing director and head of distribution and partnerships, highlighted the significance of these low fees:

"The success of BTC and ETH to-date is emblematic of strong client demand for low-cost [crypto] ETPs."

Fee Wars Intensify among Spot Crypto ETF Issuers

The launch of spot BTC and ETH ETFs in January and July sparked a fee war among fund issuers. 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 an effort to attract more investors. Spot crypto ETFs generally charge shareholders between 0.15% and 0.25% of assets under management each year.

Grayscale’s GBTC and ETHE: Outliers with High Fees

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

Spot BTC ETFs Dominate the Market

Since the launch of spot BTC ETFs in January following a lengthy review process with the Securities and Exchange Commission (SEC), Bitcoin has dominated the ETF landscape. According to data from Bloomberg Intelligence, United States spot BTC ETFs broke $100 billion in net assets for the first time in November.

Beyond Bitcoin ETFs: Grayscale’s Diversified Portfolio

In addition to its suite of Bitcoin ETFs, Grayscale manages a range of alternative cryptocurrency funds that may also become ETFs in 2025. Some notable examples include:

• Grayscale’s Aave Investment Fund: Launched in October, this fund invests in the governance token (AAVE) of the decentralized lending platform Aave.
• Three trusts for native protocol tokens: In August, Grayscale launched three trusts to invest in the native protocol tokens of Sky (formerly MakerDAO), Bittensor, and Sui.

Proposed Crypto Funds: Index ETFs and Staking ETFs

In anticipation of potential regulatory changes under President-elect Donald Trump’s administration, issuers are seeking to list a variety of proposed crypto funds. These include index ETFs and ETFs offering staking opportunities.

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