Ethereum
Grayscale Cuts Ethereum Mini Trust Fees to Market-Low 0.15%
Shades of greyone of the transmitters of imminence Ethereum exchange-traded fund (ETF) has lowered the management fee for its Mini Trust to 0.15% from 0.25%, according to a July 18 filing.
The company declared:
“Grayscale Investments has updated its registration statement for Grayscale Ethereum Mini Trust to reflect a 0.15% management fee. Additionally, we are waiving the fee to 0% for the first six months, applicable up to $2 billion in assets under management (AUM).”
This move positions Grayscale Ethereum ETF both the cheapest and the most expensive. The Grayscale Ethereum Trust (ETHE), which will be converted into an ETF, maintains a 2.5% fee structure, while the Mini Trust would attract the cheapest fees on the market.
Ethereum ETF Fees (Source: Karl/X)
Market analysts previously predicted that ETHE’s high fees could prompt investors to turn to cheaper alternatives from competitors like Black rockFidelity Investments, VanEck, Bitwiseand Franklin Templeton, with fees between 0.19% and 0.25%.
Notably, a similar situation has occurred with spot Bitcoin ETFs. Grayscale’s Bitcoin Trust has has seen more than $18 billion outflows since its conversion to an ETF in January, with investors rushing to cheaper ETFs from BlackRock and others.
To prevent this from happening again, Grayscale decided to reallocate 10% of the $10 billion in ETHE to its Mini Trust. And by reducing the Mini Trust fees, Grayscale offers the most competitive rates.
Market watchers believe the move could mitigate some of the likely outflows from ETHE. Crypto analyst Karl said:
“Grayscale has lowered ETH fees to 0.15%. It is now the most competitive ETF in terms of fees, which will likely avoid [assets under management] “Grayscale leaks and reduced ETHE outflows. There are rumors that ETHE -> ETH conversion is tax-free, which would be even more optimistic.”
Similarly, Nate Geraci, president of ETF Store, highlighted the significance of the move, saying it was a bold strategy given Grayscale’s central role in launching crypto ETFs.
He added:
“Grayscale has led the way in regulation for spot btc and eth ETFs. Period. There is no reason not to take advantage of this by taking a leadership position in how they approach competition in the spot crypto ETF category.”
Mentioned in this article
Editor Editor 
Liam “Akiba” Wright
Editor-in-Chief at CryptoSlate
Also known as Akiba, Liam is a journalist, editor, and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to bring about positive change on a large scale.
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