Grayscale Investments’ Bitcoin and Ethereum Mini Trusts reached a $750 million inflow record in three months.
Grayscale Investments, a prominent American crypto asset manager, has announced that its two major regulated funds, the Bitcoin and Ethereum Mini Trusts, have reached a significant milestone.
According to a press release, these products have accumulated $750 million in assets since launching in July.
Grayscale Establishes Its Own Benchmark
Grayscale emphasized that achieving $750 million in inflows amid a competitive market is a considerable achievement.
Despite its established role in the Web3 ecosystem, the company has faced consistent outflows from its other funds.
The firm markets its Bitcoin and Ethereum Mini Trusts as the most affordable crypto ETFs currently available, which has attracted substantial institutional inflows.
Grayscale has been instrumental in the development of spot Bitcoin ETFs. After its initial attempt to convert the GBTC Trust into a Bitcoin ETF was denied by the U.S. Securities and Exchange Commission (SEC), the company sought legal action.
Following months of litigation, Grayscale prevailed, leading the SEC to re-evaluate its decision, and ultimately, Grayscale successfully converted both GBTC and ETHE into fully regulated crypto ETFs.
In response, Grayscale imposed higher-than-anticipated fees for the GBTC and ETHE products compared to its competitors, which led to continuous capital outflows from both ETFs.
Nonetheless, the Grayscale Bitcoin Trust has maintained higher revenue relative to other BTC ETFs with lower fees but larger inflows.
Evolving Institutional Investor Preferences
Grayscale reported that the Bitcoin and Ethereum Mini Trusts demonstrate a demand for low-cost ETFs, with both set at a 0.15% fee.
These products have attracted some funds that had previously flowed out of GBTC and ETHE.
Grayscale’s update also revealed that the Bitcoin Mini Trust now has a $2 billion asset under management (AUM), while its Ethereum Mini Trust holds $1 billion.
The broader Bitcoin ETF market has gained momentum alongside the ‘Uptober’ rally, with Bitcoin price returning to $71,000, sparking anticipation for a new all-time high.
Major ETF providers such as BlackRock and Fidelity stand to benefit from this bullish trend, though Grayscale is also poised to capture some of the potential liquidity for its funds.
