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Grayscale Bitcoin Trust

The United States Securities and Exchange Commission (SEC) has approved Grayscale’s latest spot Bitcoin exchange-traded fund (ETF), named the <a href="https://www.grayscale.com/blog/general-updates/what-is-grayscale-bitcoin-mini-trust" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Grayscale Bitcoin Mini Trust</a> (BTC), for listing on the New York Stock Exchange’s (NYSE) Arca electronic trading platform.
This development was confirmed in a filing dated July 26.
This approval represents a significant achievement for Grayscale, which recently announced plans to partially spin off its primary Bitcoin fund, the Grayscale Bitcoin Trust (GBTC), into the new Mini Trust.
A Grayscale spokesperson expressed excitement over the SEC’s approval, stating, “Grayscale is excited to share that the [SEC] has approved NYES Arca’s Form 19b-4 application to list and trade shares of Grayscale Bitcoin Mini Trust (proposed ticker: BTC).”
The company awaits the registration statement’s effectiveness, which will enable the Mini Trust to operate as a U.S. spot Bitcoin ETP, alongside GBTC and other funds.
The Mini Trust offers a notably lower management fee of 0.15%, 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 GTBC to the Mini Trust.
Current GBTC shareholders will receive shares in the Mini Trust proportional to their existing GBTC shares.
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This transition ensures that GBTC holders will maintain the same amount of spot BTC, but 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.
An insider mentioned that this distribution method provides existing shareholders with a tax-advantaged way of transitioning from the legacy fund to the new ETF, potentially offering more flexibility and benefits.
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SEC Approves Grayscale’s New Bitcoin Mini Trust ETF for NYSE Listing, Introducing Lower Fees and Tax Advantages for Shareholder

Crypto Intelligence

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