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Grayscale has filed a request with the US Securities and Exchange Commission to seek the formation of a Bitcoin Mini Trust. It will be floated on NYSE Arca under the ticker symbol BTC. The aim is to introduce a Bitcoin product for users who seek lower fees. According to Tuesday’s filing, Bitcoin Mini Trust will be formed by dedicating a percentage of GBTC.
It will not trigger any capital gain tax. Instead, it will enable them to make a transition to a new project for a lower fee. While the fee has yet to be made public, Grayscale is expected to bring it down to a competitive level. For reference, the current fee on Grayscale is 1.5%, while those charged by Bitwise Bitcoin ETF and Franklin Templeton Digital Holdings Trust are 0.2% and 0.19%, respectively.
This is not the first time an ETF product gets a corporate spinoff. An exception is that Grayscale is looking to have a larger number of registered investment advisors and broker networks on the board. If convincing enough, RIAs and broker networks would put Grayscale’s Minit Trust right at the center of the table while interacting with their clients.
The development came at a time when BTC had surpassed $73,000, setting a new ATH and nearing the gates of Euphoria Zone. The token is listed at $73,296.04, with a surge of 1.67% in the last 24 hours at the time of drafting this article. It further reflects a rise of 9.42% in the previous seven days and 53.23% in the last 30 days. Bitcoin has sustained a $73k+ milestone for more than 3 hours now, paving the way for speculation that it could soon touch $100,000.
Original predictions estimate that the token can touch the said milestone by the end of this year, which is 2024. Alternatively, it could cross $100,000 by the end of 2025.
The majority of it depends on how Bitcoin Halving happens in April.
Grayscale filed a request for Bitcoin Mini Trust with the SEC, which was made public by Sonnenshein, the Chief Executive Officer of Grayscale. When Grayscale announced submitting Form S-1 with the Commission, he rather shared it. The availability and finality of the ticker are subject to approval by the SEC.
The introduction of BTC will be net-positive for existing GBTC investors, said Grayscale in the official announcement. This comes in light of the fact that existing investors have kept themselves away from making any movement to attract capital gains.
Grayscale has said that, if approved, Bitcoin Mini Trust will be an exciting innovation for the ETF wrapper because the current market has never experienced such an event before, despite the practice being common in other places.
Grayscale will share additional details about GBTC and Bitcoin Mini Trust through its official channels.