BTC: Grayscale’s Bitcoin ETF Competes With Leading Asset Management Firms

Fund Overview

Grayscale Bitcoin Mini Trust (BTC) is a spot Bitcoin ETF that holds the cryptocurrency directly. It tracks the CoinDesk Bitcoin Price Index with minimal tracking error. The expense ratio is 0.15%, reducing structural decay. Creation and redemption are cash‑only through Coinbase Custody.

Liquidity and Returns

BTC trades with high volume and an average 30‑day spread of 0.03%, earning an “A” liquidity grade. Over ten years it delivered a 69.5% annualized return, roughly six times the S&P 500, but with 45% annualized volatility. The low fee helps keep tracking error small.

Investor Profile and Risks

The ETF suits investors who want simple, tradable Bitcoin exposure without managing private keys. It can serve as a long‑term satellite position or a short‑term speculative vehicle. Risks include Bitcoin’s price swings, share dilution from expense‑related BTC sales, and custodial or regulatory threats.

Peer Comparison

BTC’s 0.15% fee is far lower than GBTC’s 1.5% and modest against IBIT and FBTC, which charge about 0.25%. It also avoids the premium/discount issues that plagued GBTC. However, it shares the volatility of all Bitcoin ETFs and adds custodial risk.