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Grayscale Bitcoin Trust

The Grayscale Bitcoin Mini Trust (the “Trust”) officially launched on Wednesday after receiving approval from the US Securities and Exchange Commission (SEC), emerging as a lower-cost alternative to the renowned Grayscale Bitcoin Trust (GBTC). 
<h2 id="new-bitcoin-mini-trust-debuts">New Bitcoin Mini Trust Debuts</h2> 
<a href="https://www.bloomberg.com/news/articles/2024-07-31/grayscale-bitcoin-mini-trust-btc-debuts-in-us-to-vie-for-flows" target="_blank" rel="noopener nofollow">According </a>to Bloomberg, the Grayscale Bitcoin Mini Trust, which debuted with a 0.15% expense ratio, is the lowest-cost exchange-traded product holding Bitcoin in the US market, edging out even the recently launched Bitcoin ETFs from industry giants like BlackRock and Fidelity. 
The new mini-trust is being seeded with 10% of the assets from Grayscale’s largest fund the <a href="https://bitcoinist.com/grayscale-crypto-sentiment/" target="_blank" rel="noopener ">GBTC</a>, which converted to an ETF structure in January 2023 after over a decade as a closed-end investment product. 
Zach Pandl, head of research at Grayscale, told Bloomberg: 
<blockquote>
 The timing is also excellent for investors. We have a Federal Reserve that is about to cut rates. Crypto has become an important topic in the US presidential election. The Trump platform may favor a dollar weakness, which could have implications for investors’ portfolios.
</blockquote> 
According to the report, existing <a href="https://bitcoinist.com/grayscale-solana-trust-mega-650-premium/" target="_blank" rel="noopener ">GBTC investors</a> will automatically receive shares of the mini-trust on a pro-rata basis, further providing them with exposure to the lower-cost option. 
The launch of the Grayscale Mini Trust comes amid a wave of Bitcoin and Ethereum ETF approvals in the US market this year, signalling a new era for&nbsp;<a style="font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;" href="https://bitcoinist.com/grayscale-michael-sonnenshein-steps-down-as-ceo/" target="_blank" rel="noopener ">crypto investing</a> in the country despite intense regulatory crackdown from regulators that have targeted key industry players such as Binance, Coinbase, Uniswap Labs and Ripple.&nbsp; 
However, the issuers of the Bitcoin ETFs approved in January have aggressively competed on fees, with some offering zero-fee products temporarily to attract assets.&nbsp; 
This has resulted in the Grayscale Bitcoin Trust becoming the second-largest BTC fund behind BlackRock’s iShares Bitcoin Trust, which has <a href="https://bitcoinist.com/blackrocks-etf-overtakes-grayscale/" target="_blank" rel="noopener ">accumulated </a>$20 billion in total assets since its US listing in January.&nbsp; 
On the other hand, the GBTC has seen nearly $19 billion in outflows since it transitioned to an ETF structure and began trading earlier this year, along with other eight ETFs on the market. 
<h2 id="ethereum-etf-battle-heats-up">Ethereum ETF Battle Heats Up</h2> 
The <a href="https://bitcoinist.com/bitcoin-etfs-surge-with-384-million-inflows/" target="_blank" rel="noopener ">crypto ETF landscape</a> has expanded beyond just Bitcoin, with the SEC also approving a slew of spot Ethereum funds in July. These nine US Ethereum ETFs saw a combined $33.67 million in net inflows on Tuesday, ending a four-day streak of outflows. 
Meanwhile, the Grayscale Ethereum Trust (ETHE) was the only spot Ether ETF to see negative flows, losing $120.28 million. This was compensated by strong inflows into products such as BlackRock’s ETHA, which saw $117.98 million in net new assets. 
Grayscale has also launched the lower-fee Ethereum Mini Trust (GEMP), which has attracted $181 million in net inflows, while $1.8 billion has exited the <a href="https://bitcoinist.com/institutions-gobble-up-billions-in-bitcoin-etfs/" target="_blank" rel="noopener ">higher-fee</a> Grayscale Ethereum Trust. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/prNawXug/" alt="Bitcoin" width="1815" height="858"> 
At the time of writing, the largest cryptocurrency on the market continues its consolidation price action, trading at $66,660, which represents no change from Tuesday’s price.&nbsp; 
Featured image from DALL-E, chart from TradingView.com

Grayscale’s Bitcoin Mini Trust Debuts With Record-Low Fees – Details

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