Grayscale Unveils Game-Changer: Introducing the Bitcoin Mini Trust with Reduced Fees!

Grayscale, the manager of the $28 billion GBTC spot bitcoin exchange-traded fund (ETF), plans to introduce a low-fee version called the Grayscale Bitcoin Mini Trust. The company seeks approval from the U.S. Securities and Exchange Commission (SEC) to spin out a portion of GBTC shares to seed the new product, according to a filing on Tuesday.

Grayscale Bitcoin Mini Trust: Lower Fees and Tax Benefits for Existing GBTC Investors

Existing GBTC investors could benefit from reduced total blended fees with the introduction of the Grayscale Bitcoin Mini Trust. They would not be required to pay capital-gains tax to transition into the new fund. High fees relative to rival offerings have tied GBTC shareholders to the existing product, making the realization of capital gains a concern.

Although the specific fees are undisclosed, they are expected to be competitive with some of the low-cost bitcoin ETFs in the market. Grayscale aims to match the fees of rival offerings, according to a source close to the company.

Grayscale Bitcoin Mini Trust: A Competitive Alternative Amid Rising ETF Competition

Since the approval of several spot bitcoin ETFs in January, GBTC has stood out due to its relatively high 1.5% fees. In contrast, competitors like Franklin Templeton Digital Holdings Trust (EZBC) and Bitwise Bitcoin ETF (BITB) have fees of 0.19% and 0.2%, respectively.

The Grayscale Bitcoin Mini Trust differs from traditional offerings as it is being created through a corporate spinoff. A portion of GBTC shares would automatically transfer to the new fund, thereby establishing the Grayscale Bitcoin Mini Trust.

Despite experiencing outflows of over $10 billion since its approval in January, GBTC has maintained its original asset value due to the bull market in crypto. However, fees are likely to influence the decisions of registered investment advisors (RIAs) and broker networks, making a cheaper alternative like the Grayscale Bitcoin Mini Trust appealing.

The Grayscale Bitcoin Mini Trust intends to trade under the BTC ticker on NYSE Arca.