- Grayscale’s Bitcoin Mini Trust will have lower fees than its parent fund because it is a new fund that is automatically created from 10% of the Bitcoin that GBTC holds.
More information on Grayscale’s new fund, the Bitcoin Mini Trust, which it says will be listed on NYSE Arca with the ticker BTC and have a competitive fee rate of.15%, has been made public in the company’s most recent financial filing.
The spinoff trust, which was first disclosed in March, gives Grayscale the ability to transfer a portion of the coins from Bitcoin’s original exchange-traded product to a smaller trust with lower fees without triggering a taxable event for current holders. Shares will be automatically issued to holders on the record date—which is still to be determined.
Grayscale intends to contribute 63,620 Bitcoin toward the fund’s debut payout, or 10% of the Bitcoin held by GBTC at the beginning of the year, which is valued at approximately $4 billion at current rates, according to its most recent pro forma financial statement. According to the preliminary filing, the trusts will then trade independently and share no exposure.
cost waivers and other benefits complicate that calculation, but the Mini Trust’s.15% cost would make it the lowest outright price in the industry—slightly less than Franklin Templeton’s EZBC. Right now, GBTC has the highest charge of any spot Bitcoin ETF available on the market—1.5 percent.
With $4 billion in assets, if the trust were established today, it would rank fourth among Bitcoin ETFs by AUM, trailing only Fidelity’s FBTC and BlackRock’s IBIT, which would take the lead after GBTC is distributed.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
