Grayscale Launches New Bitcoin Mini Trust

Lower Fees and Fractional Ownership

Grayscale Investments, the company behind the popular Grayscale Bitcoin Trust (GBTC), has filed with the Securities and Exchange Commission (SEC) to register a new product: the Grayscale Bitcoin Mini Trust.

This spin-off of GBTC will allow investors to hold fractional units of ownership in the trust. According to reports, it will have lower fees than GBTC, but the specific fee structure has not yet been disclosed.

Distribution to GBTC Holders

Bloomberg ETF expert James Seyffart has reported that existing GBTC holders will receive a portion of their holdings spun off into the new Grayscale Mini Trust. This new trust will trade under the ticker symbol “$BTC.”

Benefits for Long-Term Holders

The spin-off mechanism is expected to benefit long-term GBTC holders, particularly those who have been facing potential capital gains tax implications. While it’s not a complete solution, it provides a more cost-effective option than launching a standalone product.

Details Pending

The percentage of GBTC holdings that will be spun off and the specific fees associated with the Grayscale Bitcoin Mini Trust have not yet been disclosed. However, Seyffart believes it will be a non-taxable event for a portion of the shares.