Grayscale To Offer a Full Fee Waiver for its Mini Ethereum ETF Trust to Limit Inflows

Grayscale Investment has taken a proactive decision for its Mini Ethereum ETF Trust, sending shock wavesto observers. The firm has announced a fee drop to 15 basis points for its Mini ETH ETF Trust.

In its statement, Grayscale offers a full fee waiver for this trust product for six months or till inflows hit $2 billion.The company has set its spot ETH ETF as the cheapest among others within a few days of launch. This decision has sparked several reactions within the industry.

Grayscale Sets a Full Fee Waiver for Ethereum ETF

Grayscale has readjusted its strategy as the race for spot ETH ETFs nears its final laps. Recently, the company announced a full fee waiver for its Mini Ethereum ETF Trust.

As per Grayscale, the waiver will last six months or until the product reaches $2 billion in inflow, whichever occurs first.

The firm's latest move demonstrates a strategic impulse to dominate the market in less time. Moreover, the change now places Grayscale's ETF Trust as the most cost-effective ETF product.

With the readjustment, Grayscale's Mini ETH ETF Trust has a fee of 0.15%.

Before now, Grayscale declared a whopping 2.5% fee structure for its Ethereum ETF. This charge reflects a 10 times higher cost than all the competitors in the market.

Also, several ETF analysts criticized Grayscale's choice for a high fee. They speculated the firm will witness the exact trend of massive outflows seen in its spot Bitcoin ETF within the past months.

Industry's Top Personalities Commend Grayscale's Fee Adjustment

Grayscale has received praise from prominent industry personalities following a change in its ETF fee structure.

Scott Johnsson was among the first to post the change on the X platform. He said that the firm didn't disappoint his expectations this time. Instead, it wised up via its strategic move with the cost-effective 15bps fee cut.

Lowered to 15 bps, with full waiver for first $2 bn. This is what I was expecting yesterday. Grayscale wised up. https://t.co/Y0sXyTS0JT pic.twitter.com/nyuuDuTUxq

- Scott Johnsson (@SGJohnsson) July 18, 2024

Similarly, Nate Geraci,president of the ETF Store,commended Grayscale for this strategic shift. He pointed out that the changes repositioned the firm to compete favorably withother market players.

Bravo, Grayscale...

This is how you go for the jugular.

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.

Smart move IMO. https://t.co/j9EvuoxdA4

- Nate Geraci (@NateGeraci) July 18, 2024

Geraci stated: Bravo, Grayscale... This is how you go for the jugular."

Geraci also mentioned that the company's readjustment will place it as a leader among others. He believes Grayscale has created a robust regulatory path for spot BTC and Ethereum ETFs.

Meanwhile, Grayscale is not the only applicant that included a fee waiver structure for spot Ethereum ETF. BlackRock added a 0.12% fee reduction for its ETF during its initial launch period. However, the waiver will last for 12 months or until the product garners $2.5 billion in assets.

VanEck has a 0.20% fee structure for its product. However, it included a year fee waiver till the fund reaches $1.5 billion. Also, 21Shares included a fee waiver for 12 months or $0.5 billion in assets for its ETF.

The post Grayscale To Offer a Full Fee Waiver for its Mini Ethereum ETF Trust to Limit Inflows appeared first on The Tech Report.