When Could Traders See the Arrival of a Spot Bitcoin ETF?, including a more competitive 0.15% fee than the uplisted mothership GBTC product, according to a pro forma financials in itsGrayscale will contribute to the mini fund: 63,204 bitcoin, or 10% of existing assets in GBTC, as per the filing. Shares of the BTC trust are to be issued and distributed automatically to holders of GBTC shares.
Grayscale’s Bitcoin Mini Trust was conceived to offer GBTC investors a lower fee option that’s more competitively in line with other bitcoin ETFs approved back in January. This spinoff is also considered a non-taxable event for GBTC’s existing shareholders, so those investors will not be expected to pay capital-gains tax to automatically transfer into the new fund. Some early stage GBTC investors with gains in the thousands of percentages would face a significant taxable event to switch to a competitor product with a lower fee.
Grayscale’s GBTC, which charges a relatively high fee of 1.5%, appeared over a decade ago originally offered through a private placement. In mid-2015, shares began trading publicly on an over-the-counter basis. This continued until January 2024 when GBTC uplisted to NYSE Arca as a spot Bitcoin ETF. Grayscale’s current assets under management stands at around $19.6 billion; its nearest rival, which is BlackRock’s IBIT fund, has grown to just over $17.5 billion.in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence.
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GBTC fees will drop when Bitcoin ETFs ‘start to mature’ — Grayscale CEOThe Grayscale Bitcoin Trust (GBTC) has the highest fees of any U.S. Bitcoin ETF, but CEO Michael Sonnenshein says they’ll drop when the products mature.
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