The move comes amidst unrelenting outflows from GBTC since its conversion to ETF. The so-called Grayscale Bitcoin Mini Trust would operate under the ticker “BTC” upon regulatory approval. It was expected to have a “materially lower” fee than the larger Grayscale Bitcoin Trust (GBTC), currently the world’s largest digital asset fund. The mini fund would be a GBTC “spin-off”, meaning that a portion of Bitcoins backing the existing fund would be used to seed the new ETF.
Grayscale stated that the move would benefit existing GBTC shareholders by allowing them to enjoy a portion of the new fund at a lower blended fee. The other major advantage was that GBTC holders could buy shares of the mini fund without having any tax liability. The motivation to launch a more affordable Bitcoin investment vehicle comes amidst massive outflows from GBTC, with the 1.5% fee cited as the primary factor. The management fee charged by Grayscale was the highest among all ETF issuers. Most other players were charging between 0.2% and 0.4
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