Grayscale Investments has made its Grayscale Ethereum Mini ETF even more appealing by lowering its annual fee to 0.15%. This reduction makes it the cheapest ETF available in the market. Additionally, the company has decided to waive this fee entirely for the first six months, for investments up to $2 billion.
The updated fee structure comes after the recent approval of the Grayscale Ethereum Mini ETF by the Securities and Exchange Commission (SEC). This approval, given alongside the approval of ProShares’ Ethereum ETF, paves the way for the fund to start trading as early as next week.
The introduction of the mini-trust is an attempt to tackle outflows from Grayscale’s larger Ethereum Trust. The conversion of the existing closed-end fund to a spot Ethereum ETF would have made it challenging to redeem shares. Hence, Grayscale decided to introduce the mini ETF, backed by assets from the larger fund.
This strategic move is essential for Grayscale as demand for regulated cryptocurrency investment products in the United States continues to rise. Analyst James Seyffart believes that the approval of the mini fund will help reduce potential outflows from the larger Ethereum Trust.
Grayscale is expected to provide further updates as the situation progresses. Seyffart predicts that trading for the mini fund could commence alongside related products in the coming week. Earlier this year, the SEC approved Grayscale’s plan to convert its Bitcoin Trust into a Bitcoin ETF, and the company also offers a lower-fee mini Bitcoin ETF.