Grayscale has announced a significant fee reduction for its Ethereum Mini-Trust, cutting the fee to 15 basis points. Additionally, the trust will offer a complete fee waiver for inflows up to $2 billion or for a period of six months.
With just four days remaining before the launch of its spot Ethereum ETF, Grayscale’s adjustments make its ETH mini-trust the most cost-effective option compared to competitors.
Grayscale Revises Ethereum ETF Fees After Initial Backlash
Earlier this week, Grayscale revealed a fee structure for its Ethereum ETF set at a steep 2.5%, making it 10 times more expensive than competing options. This high fee sparked criticism and drew negative attention, with analysts suggesting that Grayscale had not learned from recent outflows from its spot Bitcoin ETFs.
In response to the backlash, Grayscale has significantly reduced the fees for its Ethereum Mini-Trust to just 15 basis points. Additionally, the asset manager is offering a complete fee waiver for inflows up to $2 billion or for six months, whichever comes first.
This revised fee structure now positions the Grayscale Ethereum Mini-Trust as the most affordable option among all ETH ETF issuers in the market.
Industry Reaction and Market Update Following Grayscale’s Fee Reduction
ETF Store President Nate Geraci has praised Grayscale for its strategic fee reduction, noting it as a bold move to compete aggressively in the market. Geraci remarked, “Bravo, Grayscale… This is how you go for the jugular.” He emphasized that Grayscale has set a precedent in paving the regulatory path for both spot Bitcoin and Ethereum ETFs, suggesting that the firm should leverage this advantage to lead in the spot crypto ETF space.
Meanwhile, Ethereum’s price has remained relatively stable after a surge to $3,500 earlier this week. As of the latest update, ETH is trading around $3,400 as investors await the upcoming ETF launch next week.
According to Deribit data, Ethereum options with a notional value of $0.48 billion are expiring today. The put/call ratio is currently 0.36, indicating a predominantly bullish market sentiment. However, the max pain point is at $3,150.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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