GrayscaleOne of the issuers Ethereum According to an 18th July filing, exchange-traded fund (ETFs) has reduced the fee charged for managing its Mini Trust from 0.25% to just 0.15%.
The company stated:
“Grayscale Investments has updated its registration statement for Grayscale Ethereum Mini Trust to reflect a management fee of 0.15%. Additionally, we are waiving the fee to 0% for the first six months, applicable up to a maximum of $2 billion in assets under management (AUM).”
Grayscale is now in a better position. Ethereum ETFs As both the cheapest as well as most expensive. Grayscale Ethereum Trust, which is converting to ETFs, has a fee structure of 2.5%, while Mini Trust will have the lowest fee on the market.
Market analysts before predicted ETHE may drive some investors to other cheaper options, such as BlackRockFidelity Investments and VanEck BitwiseFranklin Templeton and others fees between 0.19% and 0.25%.
A similar issue occurred when spot Bitcoin ETFs were introduced. Grayscale Bitcoin Trust is a Bitcoin ETF. experienced over $18 billion Investors have flooded into ETFs that are cheaper, such as BlackRock’s.
Grayscale has seeded its Mini Trust with 10% of ETHE’s $10 billion to prevent this from happening again. Grayscale is offering competitive rates because it has lowered the Mini Trust fee.
This move is expected to reduce some of the ETHE’s likely outflows. Crypto analyst Karl said:
“Grayscale lowered ETH fees to 0.15%. It is now the most competitive ETF from a fee-perspective, this will likely avoid [assets under management] leakage from Grayscale and reduce ETHE outflows. There are rumors the ETHE -> ETH conversion is tax-exempt, which would be even more bullish.”
Nate Geraci (President of ETF Store) also recognized the importance of this decision, calling it a bold move given Grayscale’s role as a pioneer in crypto ETF launches.
The following is a list of the most popular ways to get in touch with someone. added:
“Grayscale paved regulatory path for spot btc & eth ETFs. Period. No reason not to capitalize on that by taking leadership position in how they approach competition in spot crypto ETF category.”
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Source: cryptoslate.com