Asset management firm Grayscale has disclosed new details about its new Bitcoin Mini Trust fund, a “spin-off” of the GBTC exchange-traded fund (ETF). The new fund, which was announced for the first time in March, is expected to operate independently and provide a profitable investment option to GBTC shareholders.
Grayscale offers industry-low fees with new fund
According to a recent deposit Along with the U.S. Securities and Exchange Commission (SEC), asset manager Grayscale plans to set fees for its new Bitcoin Mini Trust at one-tenth of the current 1.5% fee for GBTC.
The 0.15% fee would make the fund the cheapest among the 11 Bitcoin ETFs approved in early January, followed by Franklin Templeton’s fund at 0.19%.
The filing revealed that Grayscale intended to pay out 63,620 bitcoins, or 10% of the Bitcoin held by GBTC at the start of the year (equivalent to approximately $4 billion), for the initial distribution of the Mini Trust .
This $4 billion distribution would make the fund the fourth-largest spot Bitcoin ETF in terms of assets under management (AUM), behind BlackRock’s IBIT, Fidelity FBTC, and Grayscale’s GBTC itself.
Like before reported by Bitcoinist, existing GBTC shareholders will receive shares of Grayscale Mini Trust. The asset manager plans to list the fund on the New York Stock Exchange Arca under the symbol “BTC” and expects the product to begin trading on the exchange immediately after the initial distribution.
Figures still hypothetical: Bloomberg analyst
Eric Balchunas, analyst at Bloomberg ETF took the platform to share your opinion on the latest update of the new Mini Trust from Grayscale. “This is pro forma financial data and, as such, hypothetical,” Balchunas wrote in an article on X.
For context, pro forma financial data refers to a set of financial statements that use hypothetical assumptions to support investment proposals. This means that some changes could still take place before the fund begins trading.
UPDATE: This is therefore pro forma financial data and, as such, hypothetical. This does not necessarily mean $BTC will be 15 basis points. But the good news is they had to pick a number for that and knew people would be watching and they went with 15 basis points. Whatever it is, make of it what you will. Updates as I receive them!…
– Eric Balchunas (@EricBalchunas) April 20, 2024
Balchunas noted in his message:
This does not necessarily mean that BTC will be 15 basis points. But the good news is they had to pick a number for it and knew (people) would be watching, and they went with 15 basis points.
The development comes as investors continue to withdraw funds from the Grayscale Bitcoin Trust since its debut earlier this year. According to SoSo Value, GBTC recorded a net outflow of $45.82 million last week.
Bitcoin price breaks above $65,000 again on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Business Wire, chart from TradingView
