Grayscale Plans To Launch Its Bitcoin Mini Trust

Grayscale has submitted an application to the U.S. SEC for a new Bitcoin trust called Grayscale Bitcoin Mini Trust.

Top digital assets management firm Grayscale has taken another step into the spot Bitcoin ETF market.

Sources confirm Grayscale applied to a Grayscale Bitcoin Mini Trust” under the ticker BTC. This new Bitcoin ETF will give investors non-taxable exposure to Bitcoin.

Deep Dive Into Grayscale’s Bitcoin Mini Trust Application

According to Bloomberg ETF analyst James Seyffart, Grayscale applied to the US Securities and Exchange Commission to approve a new spot Bitcoin Exchange Traded Funds called “Grayscale Bitcoin Mini Trust”. Having BTC as its ticker, the Bitcoin trust is expected to have a competitive fee and will come from a spinoff from GBTC.

Additionally, Grayscale Bitcoin Trust (GBTC) investors will have some percentage of their holdings added to the new fund. James added that the new trust will offer GBTC investors tax-free exposure to Bitcoin as a a cheaper and cost-competitive product.

Grayscale CEO Michael Sonnenshein, reacting to the application, disclosed that the asset manager may not sell its securities until the registration statement filed with the Securities and Exchange Commission becomes effective.

Grayscale currently charges an annual management fee of 1.50%, which is significantly higher than the newly launched spot Bitcoin ETFs. Competitors like BlackRock and Fidelity, who have experienced large trading volumes, charge 0.25% or less. VanEck recently announced a fee cut until 2025 to 0% this week.

The main reason why remaining GBTC shareholders haven’t withdrawn their money is because of capital gains taxes. The asset manager has witnessed a substantial outflow of over $11 billion, approximately 231,000 BTC, since it shifted to a spot ETF in January.