Grayscale, a leading asset management firm, has announced details about its new Bitcoin Mini Trust, a spin-off of its popular GBTC exchange-traded fund (ETF).
Low Fees, High Value
The Mini Trust will charge a fee of just 0.15%, significantly lower than the current 1.5% fee for GBTC. This makes it the cheapest Bitcoin ETF on the market, offering a cost-effective option for investors.
Initial Distribution and Size
Grayscale plans to distribute 63,620 bitcoins (worth around $4 billion) to the Mini Trust from GBTC’s holdings. This will make it the fourth-largest Bitcoin spot ETF by assets under management.
Stock and Trading
Existing GBTC shareholders will receive stock in the Mini Trust. The fund will be listed on the New York Stock Exchange Arca under the ticker “BTC” and is expected to start trading immediately after the initial distribution.
Hypothetical Numbers
Analyst Eric Balchunas cautions that the fee and distribution figures are hypothetical and may change before the fund starts trading. However, he notes that Grayscale’s decision to choose a low fee of 0.15% is a positive sign.
Ongoing Withdrawals from GBTC
Despite the launch of the Mini Trust, investors continue to withdraw funds from the Grayscale Bitcoin Trust. This suggests that some investors may be looking for lower-cost alternatives.
