Grayscale Bitcoin and Ethereum Mini ETF Hits $750 Mln Inflow Milestone

Grayscale Bitcoin and Ethereum Mini ETF Hits 750 Mln Inflow Milestone

American crypto asset manager Grayscale Investments has announced that two of its major regulated funds, the Bitcoin and Ethereum Mini Trusts have hit a major milestone. As contained in a press release, the products have accumulated $750 million since their debut in July.

Grayscale Setting Its Own Standard

As the firm highlighted, achieving the $750 million standard inflow in a competitive market is no small feat. Despite its foothold in the broader Web3 ecosystem, Grayscale has continued to suffer ecosystem-linked outflows from its funds.

The company branded the Bitcoin and Ethereum Mini trusts as the cheapest crypto ETF products in the market at the moment. This has notably helped it drag in more institutional inflow as of now.

Grayscale Investments played a crucial part in the emergence of spot Bitcoin ETF in general. After initially applying to convert its original GBTC Trust into Bitcoin ETF, the US Securities and Exchange Commission (SEC) denied its request. This led the firm to seek legal redress in Court.

After months of litigation, Grayscale finally won the case as the markets regulator was compelled to review its denial request. With this foundational role, Grayscale managed to convert both the GBTC and ETHE to full-fledged crypto ETF.

It, however, compensated itself by setting a higher than expected fee for GBTC and ETHE compared to its rivals. This move sparked a consistent outflow of both ETF’s capital. However, Grayscale Bitcoin Trust has managed to command more revenue compared to other BTC ETF issuers that has lower fees but higher inflows.

Shifting Institutional Investor Outlook

According to its update, Grayscale said the Bitcoin and Ethereum Mini Trust is proof that investors wants a low cost ETF. Setting the fees for both at 0.15%, these ETF products have managed to tap some of the funds flowing out of GBTC and ETHE.

As part of the update, Grayscale confirmed that while the Bitcoin Mini Trust has a $2 billion AUM, its Ethereum counterpart boasts of $1 billion.

The broader Bitcoin ETF ecosystem has lighted up in line with the ‘Uptober’ rally. With Bitcoin price returning to $71,000 for the first time in 7 months, the anticipation for a new All-Time High (ATH) is high.

Bitcoin ETF issuers like BlackRock and Fidelity will emerge as the biggest beneficiary of this bullish trend. Grayscale might also pull a significant weight in tapping some of the potential liquidity for its funds.

The post Grayscale Bitcoin and Ethereum Mini ETF Hits $750 Mln Inflow Milestone appeared first on CoinGape.


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