According to an amended S3 filing, asset manager Grayscale has lowered its 2% management fee to 1.5% as part of its proposed elevation to a spot bitcoin ETF.ABN AMRO Clearing, Virtu, Macquarie Capital, and Jane Street will now be authorized participants (APs) of Grayscale, which manages assets under management (AUM) of about $27 billion.
“We did a ton of research to evaluate similar product offerings’ fees, including spot and futures-based ETFs in geographies around the world that have been earlier to open access to bitcoin through the ETF wrapper,” Michael Sonnenshein, CEO of Grayscale Investments, said in an interview.
Sonnenshein declined to comment on any of the other ETF issues such as BlackRock, which said its fee will start at 0.20%, rising to 0.30%.
“It’s not surprising to see all the new issuers coming to market here in the US, engaging in a fee war, in a race to the bottom, where they’re all starting from scratch and hoping to gain assets from investors,” Sonnenshein added.