Grayscale unveils 0.15% fee structure for Bitcoin Mini Trust ETFByAyush Pande - April 21, 2024

In a recent filing, ETF provider Grayscale announced a low fee of 0.15% on the Bitcoin Mini Trust, its newest exchange-traded fund. This makes Grayscale’s Bitcoin Mini Trust the cheapest $BTC ETF on the market.

Earlier in March, the US-based crypto asset manager tried to register the Bitcoin Mini Trust with the SEC to provide investors with a cheaper alternative to the flagship Grayscale Bitcoin Trust (GBTC) ETF.

As per the financial statements submitted in the filing, Grayscale intends to allocate 63,204 $BTC tokens, equivalent to 10% of the current assets in GBTC, to the new mini fund. Shares of the $BTC trust will be automatically issued and distributed to GBTC shareholders.

The filing also clarified that clients will receive one Bitcoin Mini Trust share for every GBTC share under their possession as of the record date. Moreover, the new ETF will be launched under the $BTC ticker on NYSE Arca, with Grayscale expecting the shares to be available for trading on the business day following the distribution date.

Although the shareholders will not receive any appraisal rights, this separation will be regarded as a non-taxable occurrence for existing GBTC shareholders. As such, owners of GBTC shares will be relieved from the obligation to pay capital gains tax when transitioning automatically to the new fund.