Jan 8, 2024 - Business

Grayscale's latest ETF filing shows a fee cut

Illustration of the bitcoin logo inside a locater icon.

Illustration: Maura Losch/Axios

Grayscale Bitcoin Trust (GBTC) submitted a new version of its ETF application Monday morning, in what appears to be the final gasp for bitcoin ETF hopefuls before a decision is made.

Why it matters: GBTC used to be the only bitcoin game in town, but now is poised to cut fees if it gets approval to convert to an ETF.

  • The filing, which contains the prospectus for a converted GBTC, contains key details for launch, including the fee cut. (Axios Crypto has been expecting issuers to compete on fees)

Zoom in: As an ETF, GBTC will charge an annual fee of 1.5%, down from the 2% it charged as a trust.

  • Notably, shareholder fees have been a boon for Grayscale, and its parent Digital Currency Group.
  • FTX's Alameda filed a suit in March over them.

State of play: With 19b-4 amendments filed by exchanges Friday, more details from ETF issuers should start to roll in via amendments to their S-1s if the march to a commission vote continues.

  • So far Invesco/Galaxy's Bitcoin ETF offers the best deal, 0% for the first $5 billion in assets over the first 6 mos.
  • The current high is Hashdex's 0.94% annual fee, although GBTC's fee will surpass that if the ETF is approved.

Bottom line: The Bitcoin ETF fee wars have begun even as the ETFs still need the nod from regulators to launch.

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