Grayscale Bitcoin Mini Trust begins trading following SEC approval for NYSE Listing
The mini version of Grayscale BitcoinTrust (GBTC) began trading on Wednesday morning following the approval from the U.S. Securities and Exchange Commission (SEC).
Grayscale is excited to announce the launch of Grayscale Bitcoin Mini Trust, ticker: $BTC. BTC comes to market as a spin-off of our flagship fund $GBTC, and at the ultra-low cost of 0.15%. pic.twitter.com/nOrdAPCKTj
— Grayscale (@Grayscale) July 31, 2024
The largest cryptocurrency asset manager in the world, Grayscale Investments, which offers over 20 investment products, announced today that the Grayscale Bitcoin Mini Trust, a spot Bitcoin ETP, is now trading on the NYSE Arca as of 4:00 AM ET, according to a press release by the company.
Since the inception of GBTC in 2013, the Grayscale team has been convinced of Bitcoin's transformative potential. "We are thrilled to introduce the Grayscale Bitcoin Mini Trust to further reduce the barrier to accessing Bitcoin in an SEC-regulated investment vehicle," stated David LaValle, Senior Managing Director and Head of ETFs at Grayscale. In addition to being devoted to promoting the potential of Bitcoin and the whole cryptocurrency asset class, Grayscale is pleased to be pushing the boundaries of innovation in the ETP wrapper for the benefit of our investors and the wider market, the statement explained.
Grayscale has been managing GBTC, a pioneering Bitcoin fund, for over ten years. Its landmark lawsuit victory paved the way for the introduction of all U.S. crypto ETPs to the market. To support customers at every stage of their investing journey, the Grayscale team is dedicated to developing future-forward investment products, the post added.
With more than ten years of experience managing the Grayscale flagship Bitcoin fund, the firm is well-positioned to launch the first "mini" Bitcoin ETP in the US, expanding its diversified product suite to meet the needs of every customer interested in crypto investing, according to John Hoffman, Managing Director, Head of Distribution and Strategic Partnerships at Grayscale. For investors and financial professionals looking to add low-cost, long-term exposure to Bitcoin to their investment account, BTC is one of the most effective tools due to its built-in liquidity, diversified shareholder base, and easily accessible share price.
Grayscale Bitcoin Mini Trust low fees for competitive advantage
Growing institutional interest has led to increased competition since the approval of eleven spot BTC ETFs earlier this year. As a result, the Grayscale Bitcoin Mini Trust will only charge 15 basis points (15bps), a smaller fee. The lower fees are intended to compete with those of other ETFs that have lower fees, like Bitwise, which charges 0.2%.
Compared to the 1.5% annual fee charged by the GBTC fund, the Mini Trust offers a noticeably lower management fee of 0.15%. 10% of GTBC's spot Bitcoin will be given to the Mini Trust by Grayscale on July 31, according to a statement during the approval.
Notably, institutions and individual investors can now make smaller fee investments after Grayscale BTC Mini Trust approval. Because institutional investors are increasingly adopting these digital assets, the move will be vital in drawing in investors and effectively competing with other ETFs.
Why SEC approved Grayscale Bitcoin Mini Trust?
On Friday, the smaller version of the Grayscale Bitcoin Trust (GBTC), the Grayscale Bitcoin Mini Trust, received approval from the US Securities and Exchange Commission (SEC). The trust has received this approval in the form of a Form 19b-4.
According to the report, a certain amount of Bitcoin will be contributed by the GBTC to the mini trust, and GBTC shareholders will receive new shares of the mini trust. The SEC made its decision on the grounds that it believes this mini-trust and other exchange-traded products of a similar nature will protect sensitive information, encourage transparency, and stop unfair trading.
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