coindesk.com
Grayscale’s new ETF product, the Bitcoin Mini Trust has set fees at 0.15%
Grayscale said it will contribute around 10% of GBTC assets to the Mini Fund, some 63,204 bitcoin.
Bitcoin ETF provider Grayscale has provided some details of its spin-off fund, the Bitcoin Mini Trust ($BTC), including a more competitive 0.15% fee than the uplisted mothership GBTC product, according to a pro forma financials in its latest filing.
The filing also provides an illustrative example of the amount of Bitcoin ($BTC) Grayscale will contribute to the mini fund: 63,204 bitcoin, or 10% of existing assets in GBTC, as per the filing. Shares of the $BTC trust are to be issued and distributed automatically to holders of GBTC shares. (Pro forma financial statements are projections of future expenses and revenues, based on a company's past experience and future plans.)
Grayscale’s Bitcoin Mini Trust was conceived to offer GBTC investors a lower fee option that’s more competitively in line with other bitcoin ETFs approved back in January.
This spinoff is also considered a non-taxable event for GBTC’s existing shareholders, so those investors will not be expected to pay capital-gains tax to automatically transfer into the new fund. Some early stage GBTC investors with gains in the thousands of percentages would face a significant taxable event to switch to a competitor product with a lower fee.
Grayscale’s GBTC, which charges a relatively high fee of 1.5%, appeared over a decade ago originally offered through a private placement. In mid-2015, shares began trading publicly on an over-the-counter basis. This continued until January 2024 when GBTC uplisted to NYSE Arca as a spot Bitcoin ETF.
Grayscale’s current assets under management stands at around $19.6 billion; its nearest rival, which is BlackRock’s IBIT fund, has grown to just over $17.5 billion.