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Grayscale's mini version of "BTC" may reduce fees to as low as 0.15%, challenging the lowest price on the market.

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CoinDesk reported that according to financial projections submitted by Grayscale, its registered Grayscale Bitcoin Mini Trust ETF will charge a fee of 0.15%, lower than other Bitcoin spot funds currently available on the market.

Mini Grayscale Bitcoin Spot ETF Fees Could Be as Low as 0.15%

Grayscale submitted an S-1 filing to the SEC on March 12 for the registration of a mini version of the Grayscale Bitcoin Spot ETF, the Grayscale Bitcoin Mini Trust, BTC, which is set to be listed on the New York Stock Exchange Arca.

Grayscale plans to split off one percent of GBTC's assets to establish a new Bitcoin mini trust, BTC, with shares of the BTC trust automatically issued and distributed to GBTC shareholders. According to its current financial projections, the proposed split version of the fund is expected to charge a fee of 0.15%, which is lower than existing Bitcoin spot ETFs in the market. Currently, Franklin's EZBC has a fee rate of 0.19%, making it the lowest-cost Bitcoin spot ETF available.

Automatic Splitting, Potentially Tax-Free Capital Gains

For existing GBTC shareholders, the Grayscale split is considered a tax-free event, allowing these investors to automatically transfer their original shares into the new fund without having to pay capital gains tax. This is advantageous for some early GBTC investors who have seen gains of thousands of times, as they would face significant capital gains taxes if they were to sell their original GBTC to purchase other products with lower fees.

However, Bloomberg ETF analyst Eric Balchunas noted that pro-forma financials are based on the company's past experiences and plans for predicting future expenses and revenues. The projected 0.15% fee is just an assumption, and the actual fee announced may not necessarily be 0.15%. Nevertheless, Grayscale is aware of the attention this is receiving and will continue to provide updates on the latest information.