30s Summary

In 2024, Grayscale’s Bitcoin ETF attracted over $1bn in investment. They now manage $4bn in total, and launched two new low-cost ETFs, for Bitcoin and Ethereum, called the Grayscale Bitcoin Mini Trust and Grayscale Mini Ethereum Trust. Management fees are only 0.15%, much lower than other crypto ETFs. These funds were created in response to a clash over high fees charged by other fund providers. Grayscale also offers funds for other cryptocurrencies. Finally, the upcoming Donald Trump presidency, due to begin in 2025, is expected to boost the crypto fund market further.

Full Article

In 2024, Grayscale’s latest Bitcoin ETF scored big time, roping in more than $1 billion. Speaking to the crew over at Cointelegraph on Dec. 17, Grayscale revealed they now managed a whopping total of over $4 billion.

They didn’t stop there, though. Grayscale gave birth to two new ETFs, one each for Bitcoin and Ethereum, which they lovingly named Grayscale Bitcoin Mini Trust and Grayscale Mini Ethereum Trust. These ETFs, which spun off from their older Bitcoin and Ethereum funds in July, are offering a lower-cost alternative to their parental funds.

The cool part? These Mini Trusts charge the smallest base fees among all cryptocurrency ETFs, only asking for management fees of 0.15% each. According to Grayscale’s top guy, John Hoffman, the success of these Bitcoin and Ethereum ETFs just shows how much folks are loving these affordable cryptocurrency ETPs.

Flashback to the start of 2024, a clash over fees broke out when Bitcoin and Ethereum ETFs were launched in January and July, respectively. This led to most of these newly launched ETFs temporarily dropping or slashing their fees, sometimes for up to a year, in an effort to win over investors.

As for Grayscale’s original Bitcoin and Ethereum funds, they charge pretty hefty management fees of 1.5% and 2.5% respectively. These make them quite the odd ones out among spot crypto ETFs, which typically charge shareholders between 0.15% and 0.25% of assets under management each year.

Since their launch in January, Bitcoin ETFs have taken the lead in the ETF world. By November, the total assets in US Bitcoin ETFs had broken the $100 billion mark for the first time.

Even aside from Bitcoin ETFs, Grayscale also offers a lineup of funds for other cryptocurrencies. In fact, some of these may soon become ETFs too. Back in October, they introduced an investment fund for Aave’s governance token, and back in August, they kicked off trusts for Sky, Bittensor, and Sui’s native protocol tokens.

Looking ahead, Donald Trump, who’s set to kick off his term as president on Jan. 20, 2025, and has pledged to transform the US into the ultimate crypto hub, could bring even more excitement in the crypto fund space. With Trump’s entrance anticipated, issuers are rushing to get their proposed crypto funds, including index ETFs and ETFs with staking options, listed.