The Bitcoin ETF market is experiencing increased competition as asset managers and issuers work to appeal to clients and grow their assets under management. In the midst of this price battle, Grayscale Investments is contemplating a spin-off for its spot Bitcoin ETF, the Grayscale Bitcoin Trust (GBTC). According to a report from Reuters, the higher fees of GBTC have caused investors to move towards competing ETFs, leading to a significant outflow of $230 billion from Grayscale’s GBTC. BitMEX Research reported that GBTC has experienced capital outflows of $250 billion since January. This happened as the price of BTC peaked and other funds received investments at the same time. To complete the spin-off, Grayscale has submitted paperwork to list shares of a new investment offering known as the “Grayscale Bitcoin Mini Trust.” In this setup, a specific quantity of Bitcoin currently held by GBTC will be moved to the Mini Trust, and GBTC shareholders will receive shares in the Mini Trust. The fees for the Mini Trust have not yet been decided, as mentioned in the filing. Comparatively, Hong Kong is planning to introduce the first Ethereum ETF, overtaking the US. After the separation, GBTC and the Mini Trust will function separately. Grayscale’s success in a legal dispute with the SEC led to the authorization of spot Bitcoin ETFs in January. Rivals like BlackRock’s iShares Bitcoin ETF and Fidelity Wise Origin Bitcoin Fund have seen significant investments of $2254 billion and $6.37 billion, respectively. VanEck’s Zero-Fee Bitcoin ETF has also gained traction. VanEck, an asset manager, has decided to temporarily eliminate the management fee for its spot Bitcoin ETF, HODL, due to lagging assets compared to its competitors. The fee waiver will remain in effect until March 31, 2025, unless the fund reaches $1.5 billion in assets. If the Trust’s assets surpass $1.5 billion within that time frame, a sponsor fee of 0.20% will be applied to assets exceeding that amount.