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News

Grayscale Bitcoin Mini Trust Will Be Split From GBTC on July 31

July 19, 2024 - Around 2 mins mins to read

Key Points:

  • Grayscale’s GBTC will split into the new Grayscale Bitcoin Mini Trust (BTC) on July 31.
  • Both the new Bitcoin and Ethereum Mini Trusts will charge just 15 basis points, making them the cheapest ETF options available.
Bloomberg ETF analyst James Seyffart announced on the X platform that Grayscale’s GBTC will split into the new Grayscale Bitcoin Mini Trust (BTC) on July 31.
Grayscale Bitcoin Mini Trust Will Be Split From GBTC on July 31

Read more: Grayscale Ethereum Trust Expected NYSE Arca Listing On July 23

Grayscale Bitcoin Mini Trust Split From GBTC With Lower Fees

The move aims to provide a lower-fee investment option compared to the current Grayscale Bitcoin Trust (GBTC), which manages around $28 billion in assets.

Grayscale Investments, known for its Bitcoin and Ethereum investment products, has been working on this new initiative since March. The company filed with the U.S. Securities and Exchange Commission (SEC) to launch the Grayscale Bitcoin Mini Trust, intending to offer investors a more cost-effective alternative. The fees for this new product will be significantly lower than GBTC’s current 1.5%, rivaling other low-cost Bitcoin ETFs like those from Franklin Templeton and Bitwise, which have fees as low as 0.19% and 0.2%, respectively.

In April, Grayscale made a similar move for Ethereum, requesting SEC approval to launch an Ethereum Mini Trust ETF. Both the Bitcoin and Ethereum Mini Trusts will charge fees of just 15 basis points, making them the cheapest options among other ETFs. Additionally, Grayscale recently set July 18 as the initial distribution date for shares of its new Grayscale Ethereum Mini Trust.

Grayscale Aims to Regain Edge with Cost-Effective Crypto Investment Products

Grayscale’s efforts come after a significant win last year when it secured approval for spot crypto ETFs by winning a landmark lawsuit against the SEC. Despite previous challenges, including significant outflows from GBTC due to its high fees, the company is poised to regain its competitive edge with the new low-fee mini trusts.

Nate Geraci, president of The ETF Store, anticipates substantial interest in the Bitcoin Mini Trust, predicting it will quickly become the sixth-largest spot Bitcoin ETF by assets. Grayscale announced the launch of the Bitcoin Mini Trust in March, providing investors with untaxable exposure to the leading cryptocurrency.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.