Just-In: GrayScale Receives SEC Nod For Bitcoin Mini Trust ETF
Highlights
- Grayscale launches Bitcoin Mini Trust with a low 0.15% fee, undercutting competitors.
- SEC approves Grayscale Bitcoin Mini Trust, set to debut next Wednesday.
- Bitcoin Mini Trust to distribute shares 1:1 to GBTC holders on July 30, 2024.
Grayscale Investments has received the green light from the U. S. Securities and Exchange Commission (SEC) for its new product, the Grayscale Bitcoin Mini Trust.
Expected to open for investment next Wednesday, the fund is designed to offer investors a cheaper solution than the Grayscale Bitcoin Trust (GBTC).
SEC Approval for Grayscale’s Bitcoin Mini Trust ETF
According to Nate Geraci, the president of The ETF Store, the US SEC has given the green light to Grayscale’s Bitcoin mini trust, with the ticker BTC as the company prepares for its trading debut. Concurrently, the new fund will be a spin-off of the current GBTC in which GBTC will transfer a certain percentage of its bitcoin to the new trust.
Like the Grayscale Ethereum Mini Trust, the management fee of the Grayscale Bitcoin Mini Trust is also set at 15 basis points.
Grayscale Bitcoin Mini Trust 19b-4 has been APPROVED…
Spinoff from GBTC set to happen next Wednesday (date of record is Tuesday).
Will be lowest cost spot bitcoin ETF at 15bps. pic.twitter.com/opFrSAENFu
— Nate Geraci (@NateGeraci) July 26, 2024
This initiative is expected to distribute new shares of the mini-trust to GBTC shareholders. The SEC has said that this step is aimed at preventing pricing manipulation and increasing market transparency and orderliness for the shares of the trust.
Regulatory Steps and Anticipated Launch
Grayscale is still waiting for the BTC Trust’s registration statement on the Form S-1 to become effective. This statement is very critical for legal and regulatory issues, which enables the trust’s shares to be offered to the public.
This means that the market is still waiting for this final process of the regulation to be completed.
The record date for the initial distribution of the Bitcoin Mini Trust shares is established for Tuesday, July 30, 2024, with the distribution expected to occur the following day. Each shareholder of record of GBTC as of the close of business on the record date will receive a one-for-one distribution of new shares in the Bitcoin Mini Trust.
Strategic Reduction in Fees and Market Impact
Due to the competitive pressures and the feedback from the investors regarding the fee structures, the upcoming Grayscale Bitcoin Mini Trust will have its fee at just 15 basis points.
This adjustment makes Grayscale to be more competitive as compared to other low-cost ETFs like those from Franklin Templeton Digital Holdings Trust and the Bitwise Bitcoin ETF whose fees are approximately 0.19% and 0.2% respectively.
The reduction in fee is considered as a strategic long-term plan of attracting more investors and cementing its position in the competitive and fast growing ETF industry especially in the current environment where there is increasing adoption of digital assets.
Read Also: Ex-FTX Exec Ryan Salame Is Not Ready For Jail, Here’s Why
- Crypto Czar David Sacks to Meet Senate Republicans In Bid To Advance Market Structure Bill
- Waller Floats ‘Payment Account’ Framework to Provide Crypto Firms Access To Fed’s Payment Rails
- Aster Outpaces Lighter in Perp DEX Rankings as Wintermute Buys the Dip After Previous Dump
- Is This Final Bitcoin Price Correction Before US Shutdown Ends, Fed Rate Cuts?
- Blockchain for Good Alliance and UNDP AltFinLab Launch Blockchain Impact Forum
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism
- Bitcoin Price Prediction as Gaussian Channel Turns Green Amid U.S.–China Trade Progress and Fed Rate Cut Hopes
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
