The SEC has approved Grayscale’s Bitcoin Mini Trust ETF, which will be launched next week with a minimal 0.15% fee.
The Grayscale Bitcoin Mini Trust, a new product from Grayscale Investments, has been approved by the U.S. Securities and Exchange Commission (SEC). This ETF is based on the successful Ethereum Mini Trust model.
The fund is anticipated to become available for investment on Wednesday. It is intended to provide investors with a more cost-effective alternative to the Grayscale Bitcoin Trust (GBTC).
SEC approves Grayscale’s Bitcoin Mini Trust ETF
According to Nate Geraci, president of The ETF Store, Grayscale’s Bitcoin mini trust, designated as BTC, has been approved by the U.S. Securities and Exchange Commission (SEC) in anticipation of its trading début. In parallel, the new fund will be a spin-off of the current GBTC, in which GBTC will transfer a specific percentage of its bitcoin to the new trust.
The management fee of the Grayscale Bitcoin Mini Trust is also set at 15 basis points, similar to that of the Grayscale Ethereum Mini Trust.
It is anticipated that this initiative will result in the distribution of new mini-trust shares to GBTC shareholders. The SEC has stated that this action aims to prevent pricing manipulation and enhance market transparency and orderliness for the trust’s shares.
Anticipated Launch and Regulatory Steps
Grayscale is still anticipating the effective date of the BTC Trust’s registration statement on Form S-1. This statement is essential for the legal and regulatory issues facilitating the public offering of the trust’s shares.
This action implies that the market is still anticipating the conclusion of the ultimate regulatory process.
The initial distribution of Bitcoin Mini Trust shares is scheduled for Tuesday, July 30, 2024, with the distribution anticipated to occur the following day. This date serves as the record date. A one-for-one distribution of new shares in the Bitcoin Mini Trust will be made to each shareholder of record of GBTC as of the close of business on the record date.
Market Impact and Strategic Fee Reduction
The fee for the forthcoming Grayscale Bitcoin Mini Trust will be set at a mere 15 basis points in response to the feedback from investors and the competitive pressures.
Grayscale is more competitive than other low-cost ETFs, such as the Bitwise Bitcoin ETF and Franklin Templeton Digital Holdings Trust, which have fees of approximately 0.2% and 0.19%, respectively, due to this adjustment.
The fee reduction is a long-term strategy to attract additional investors and solidify its position in the competitive and rapidly expanding ETF industry, particularly in the current climate of evolving digital asset adoption.
