Asset manager Grayscale has dropped its 2% management fee to 1.5% as part of its proposed uplift to a spot bitcoin ETF, according to an updated S3 filing.

Grayscale, which has some $27 billion in assets under management (AUM), said it was adding Jane Street, Virtu, Macquarie Capital and ABN AMRO Clearing as authorized participants (APs).

“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.