Grayscale slashes Ethereum Mini Trust fees to 0.15%, lowest in market Grayscale slashes Ethereum Mini Trust fees to 0.15%, lowest in market
Market observers said the move would help the firm prevent substantial outflows from its legacy Ethereum Trust fund (ETHE).
2 min read
Updated: Jul. 19, 2024 at 12:20 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Grayscale, one of the issuers of the impending Ethereum exchange-traded funds (ETFs), has lowered the management fee for its Mini Trust to 0.15% from 0.25%, according to a July 18 filing.
The firm 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).”
This move positions Grayscale’s Ethereum ETFs as both the cheapest and most expensive. The Grayscale Ethereum Trust (ETHE), which will convert to an ETF, maintains a 2.5% fee structure, while the Mini Trust would attract the cheapest fee in the market.
Market analysts previously predicted that ETHE’s high fees might drive investors to cheaper alternatives from rivals like BlackRock, Fidelity Investments, VanEck, Bitwise, and Franklin Templeton, with fees between 0.19% and 0.25%.
Notably, a similar situation occurred with spot Bitcoin ETFs. Grayscale’s Bitcoin Trust has experienced over $18 billion in outflows since its conversion to an ETF in January, with investors piling into cheaper ETFs from BlackRock and others.
To prevent a repeat, Grayscale is seeding its Mini Trust by reallocating 10% of the $10 billion from ETHE. And by lowering the Mini Trust fees, Grayscale offers the most competitive rates.
Market observers believe this move would tame some of the likely ETHE 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.”
Similarly, Nate Geraci, president of ETF Store, highlighted the significance of this move, stating it was a bold strategy given Grayscale’s pivotal role in launching crypto ETFs.
He 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.”
Mentioned in this article
Ethereum 
Bitcoin 
Grayscale Investments 
BlackRock 
Bitwise 
VanEck 
Franklin Templeton 
Grayscale Bitcoin Trust Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Bitcoin
$97,364.84
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Bitwise
Bitwise Asset Management pioneered the first cryptocurrency index fund and is the leading provider of rules-based exposure to the cryptoasset space..
VanEck
VanEck is a global investment manager with offices around the world, including New York, Australia, China, Germany, Netherlands and Switzerland.
Franklin Templeton
Franklin Resources, Inc., commonly known as Franklin Templeton, stands as an American multinational holding company rooted in the world of finance.
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that provides investors with access to Bitcoin through traditional investment channels.