- Grayscale reduces Mini Ethereum Trust fees to 0.15%, becoming the lowest among similar financial products.
- Previous 2.5% fee on Ethereum Trust led to analyst warnings about potential large-scale investor withdrawals.
Grayscale has reduced the management fees for its Mini Ethereum Trust to 0.15%. This adjustment, effective from July 23, positions Grayscale as offering the lowest fee among comparable market products. This decision follows criticism over its previous higher fees and aims to retain investors in its Ethereum-based funds.
Previously we developed news about Grayscale at ETHNews, now, Grayscale charged a 2.5% fee on its Ethereum Trust, significantly higher than its competitors. This high fee led to warnings from financial analysts about potential large-scale withdrawals by investors. In response, Grayscale announced this fee reduction for its Mini Trust, which is set to be separated from its main Ethereum Trust (ETHE) following a conversion.
The new fee of 0.15% includes an additional incentive—a complete waiver on the first $2 billion managed—making it more attractive to investors.
This update was positively received by industry experts, including Bloomberg’s senior ETF analyst Eric Balchunas, who acknowledged the competitive adjustment as timely and strategic.
Mini me $ETH fee cut to 15bps (from 25bps yesterday). Officially the cheapest on mkt now. should help cause. Good catch. https://t.co/bkxZQkzOv4
— Eric Balchunas (@EricBalchunas) July 18, 2024
Nate Geraci of ETF Store, who had previously criticized Grayscale’s high fees, commended the change, describing it as an effective strategic decision in a competitive market. Despite the reduction in the Mini Trust’s fees, the charges for Grayscale’s main Ethereum Trust (ETHE) remain at 2.5%.
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
However, the revised fee structure for the Mini Trust is anticipated to help prevent the outflow of assets, especially with the upcoming final approval and potential launch of its Ethereum ETF.
The price of Ethereum is currently below $3,500, facing significant resistance levels with the expected ETF launch. The Relative Strength Index indicates strong buying interest, suggesting potential for the price to challenge the $3,500 mark and aim for $4,000.
However, if the ETF launch leads to selling pressure, support levels around $3,300 and just above $2,900 will be critical to watch.
