{"id":9604,"date":"2024-01-08T18:14:38","date_gmt":"2024-01-08T16:14:38","guid":{"rendered":"https:\/\/forklog.com\/en\/grayscales-proposed-bitcoin-etf-management-fee-surprises-analysts\/"},"modified":"2024-01-08T18:14:38","modified_gmt":"2024-01-08T16:14:38","slug":"grayscales-proposed-bitcoin-etf-management-fee-surprises-analysts","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/grayscales-proposed-bitcoin-etf-management-fee-surprises-analysts\/","title":{"rendered":"Grayscale&#8217;s Proposed Bitcoin ETF Management Fee Surprises Analysts"},"content":{"rendered":"<p>In an updated <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1588489\/000119312524003901\/d144925ds3a.htm\">S-3 form<\/a>, Grayscale has reduced its management fee from 2% to 1.5% as part of the proposed conversion of its Bitcoin Trust into a spot ETF.<\/p>\n<p>Experts compared this with offerings from other potential issuers of similar products. Bloomberg analyst James Seyffart noted that the lowest rate of 0.24% was proposed by Bitwise. This is followed by VanEck at 0.25%, although the firm also plans a zero fee for the first 3-6 months. BlackRock will charge 0.2% initially, with a subsequent increase to 0.3%.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">WOW: This morning was wild for <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> ETF filers. Here&#8217;s the state of play on the fee war front. Lowest long term fee is <a href=\"https:\/\/twitter.com\/BitwiseInvest?ref_src=twsrc%5Etfw\">@BitwiseInvest<\/a> at 0.24% followed closely by <a href=\"https:\/\/twitter.com\/vaneck_us?ref_src=twsrc%5Etfw\">@vaneck_us<\/a> at 0.25%. But we also have fee waivers on 3 for 6 months down to 0.0%. Plus BlackRock waiver to 0.20% <a href=\"https:\/\/t.co\/8bfhtFHOfH\">pic.twitter.com\/8bfhtFHOfH<\/a><\/p>\n<p>\u2014 James Seyffart (@JSeyff) <a href=\"https:\/\/twitter.com\/JSeyff\/status\/1744350052523397447?ref_src=twsrc%5Etfw\">January 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Eric Balchunas, Seyffart&#8217;s colleague, described Grayscale&#8217;s decision as a &#8220;Terrordome-style challenge&#8221;\u2014a reference to a fighting video game featuring horror film characters. He remarked that such an approach &#8220;usually doesn&#8217;t work out well.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Wow, Grayscale totally defying Terrordome (which they are not natives of) which usually doesn&#8217;t work out well but maybe they can afford to given their massive embedded aum and volume. Hard to imagine advisor (where the big money is) picking a 1.5% ETF when others sub 40bps. <a href=\"https:\/\/t.co\/T60yz3hlXh\">https:\/\/t.co\/T60yz3hlXh<\/a><\/p>\n<p>\u2014 Eric Balchunas (@EricBalchunas) <a href=\"https:\/\/twitter.com\/EricBalchunas\/status\/1744344919571833104?ref_src=twsrc%5Etfw\">January 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Perhaps they can afford it, given their already massive <span data-descr=\"\u0441\u0442\u043e\u0438\u043c\u043e\u0441\u0442\u044c \u0430\u043a\u0442\u0438\u0432\u043e\u0432 \u043f\u043e\u0434 \u0443\u043f\u0440\u0430\u0432\u043b\u0435\u043d\u0438\u0435\u043c\" class=\"old_tooltip\">AUM<\/span> and volume. But it&#8217;s hard to imagine an advisor (where the big money is) choosing a 1.5% ETF when others trade below 0.4%,&#8221; the expert added.<\/p>\n<\/blockquote>\n<p>At the time of writing, the assets of the Grayscale Bitcoin Trust <a href=\"https:\/\/www.grayscale.com\/crypto-products\">exceed<\/a> $27.2 billion. The trust holds over 622,600 BTC, accounting for about 3% of the total issuance of the first cryptocurrency.<\/p>\n<p>Grayscale CEO Michael Sonnenshein told <a href=\"https:\/\/www.coindesk.com\/business\/2024\/01\/08\/grayscale-announces-15-fees-for-its-proposed-bitcoin-etf-uplift\/\">CoinDesk<\/a> that the firm set the fee based on research of existing similar products, including futures, worldwide.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;It&#8217;s no surprise that all new issuers entering the market here in the US are engaging in a fee race. They all start from scratch and hope to attract assets from investors,&#8221; he commented.<\/p>\n<\/blockquote>\n<p>The company also announced Jane Street, Virtu, Macquarie Capital, and ABN AMRO Clearing as authorized participants for the future exchange-traded bitcoin fund.<\/p>\n<p>Earlier in January, Seyffart noted that all potential issuers of ETFs based on the spot price of digital gold had submitted final amendments to the <span data-descr=\"\u041a\u043e\u043c\u0438\u0441\u0441\u0438\u044f \u043f\u043e \u0446\u0435\u043d\u043d\u044b\u043c \u0431\u0443\u043c\u0430\u0433\u0430\u043c \u0438 \u0431\u0438\u0440\u0436\u0430\u043c \u0421\u0428\u0410\" class=\"old_tooltip\">SEC<\/span>. According to the analyst, this puts them on the &#8220;home stretch&#8221; towards product approval.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In an updated S-3 form, Grayscale has reduced its management fee from 2% to 1.5% as part of the proposed conversion of its Bitcoin Trust into a spot ETF. Experts compared this with offerings from other potential issuers of similar products. Bloomberg analyst James Seyffart noted that the lowest rate of 0.24% was proposed by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9603,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[569,943],"class_list":["post-9604","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-etf","tag-grayscale-investments"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/9604","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=9604"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/9604\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/9603"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=9604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=9604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=9604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}