Grayscale’s Bitcoin Mini Trust Approved by SEC
The US Securities and Exchange Commission (SEC) has given the green light to Grayscale’s latest spot Bitcoin exchange-traded fund (ETF), the Grayscale Bitcoin Mini Trust (BTC). This news was announced in a filing on July 26, marking a significant milestone for Grayscale.
The new ETF will be listed on the New York Stock Exchange’s (NYSE) Arca electronic trading platform. It’s worth noting that Grayscale recently shared plans to partially spin off its primary Bitcoin fund, the Grayscale Bitcoin Trust (GBTC), into this Mini Trust.
A Grayscale spokesperson expressed their excitement about the SEC’s approval, stating, “Grayscale is excited to share that the [SEC] has approved NYSE Arca’s Form 19b-4 application to list and trade shares of Grayscale Bitcoin Mini Trust (proposed ticker: BTC).”
The company is now eagerly awaiting the registration statement’s effectiveness, which will pave the way for the Mini Trust to function as a U.S. spot Bitcoin ETP, alongside GBTC and other funds.
One of the key attractions of the Mini Trust is its considerably lower management fee of 0.15%. This is significantly less than the 1.5% annual fee charged by the GBTC fund.
On July 31, Grayscale will allocate 10% of the spot Bitcoin held by GBTC to the Mini Trust. Existing GBTC shareholders will receive shares in the Mini Trust proportionate to their existing GBTC shares.
This transition ensures that GBTC holders will retain the same amount of spot BTC, albeit distributed across two separate funds.
Earlier this month, on July 8, Grayscale announced a similar initiative with its Grayscale Ethereum Trust (ETHE), where existing shareholders were granted shares in the newly established Grayscale Ethereum Mini Trust (ETH). Both GBTC and ETHE funds are among the oldest spot Bitcoin and Ethereum funds in the U.S., having launched in 2013 and 2017, respectively. The GBTC fund alone manages over $17 billion in assets.
This distribution method is thought to offer existing shareholders a tax-advantaged way of transitioning from the legacy fund to the new ETF, potentially providing more flexibility and benefits.
