Bitcoin ETF

Bitcoin

Read

Grayscale is seeking the SEC’s approval for a Bitcoin Mini Trust to reduce its Bitcoin ETF fees.&nbsp;
The mini trust aims to offer a more cost-effective option to the company’s existing $28 billion GBTC spot <a href="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a> ETF. The proposal, detailed in a recent SEC filing, outlines Grayscale’s strategy to fund this new offering by reallocating a portion of the shares from its GBTC ETF.
The introduction of the Grayscale <a href="https://twitter.com/Grayscale/status/1767565128256389291" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Mini Trust</a> aims to lower the aggregate fees for current GBTC investors, promising them a reduction in expenses without the burden of capital gains tax for transitioning to the new fund. The proposal is particularly significant given that avoiding capital gains tax has been a critical factor in keeping investors attached to the GBTC despite its higher fees than competitors.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Today, Grayscale submitted a Form S-1 for a new spot Bitcoin ETF called Grayscale Bitcoin Mini Trust with the U.S. Securities and Exchange Commission. Upon appropriate regulatory approvals, the ticker for this product would be <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$BTC</a>. Pending approval, we plan for this new ETF to… <a href="https://t.co/1EQk7jan2R" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/1EQk7jan2R</a>— Grayscale (@Grayscale) <a href="https://twitter.com/Grayscale/status/1767565128256389291?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">March 12, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
You might also like: <a href="https://crypto.news/bitcoin-new-all-time-high-73000/" rel="noopener noreferrer nofollow"> Bitcoin hits new all-time high at $73k </a>
While the specific fee structure for the new mini trust has yet to be announced, insiders suggest it will be in line with the lower end of the market, positioning it as a competitive alternative among existing <a href="https://crypto.news/bitcoin-new-all-time-high-73000/" rel="noopener noreferrer nofollow">Bitcoin</a> ETF offerings.
The GBTC has maintained its dominance in the market, even converting from a closed-end fund to an ETF, despite its higher fee rate of 1.5%. The rate contrasts the lower fees offered by competitors such as Franklin Templeton Digital Holdings Trust (EZBC) and the Bitwise Bitcoin ETF (BITB), which charge 0.19% and 0.2%, respectively.
The launch of a standard and a mini version of an ETF within the industry is a well-established <a href="https://etfdb.com/etfs/size/small-cap/" target="_blank" rel="noopener noreferrer nofollow">practice</a> that aims to cater to a broader range of investor preferences and financial capabilities.
Despite a significant <a href="https://crypto.news/grayscale-outflows-continue-as-bitcoin-trust-sees-494-million-withdrawal/" rel="noopener noreferrer nofollow">outflow</a> of over $10 billion from the GBTC since the approval of several spot bitcoin ETFs earlier in the year, the value of the main fund has remained stable. This stability is attributed mainly to the bullish crypto market, which has offset the impact of these outflows.
Read more: <a href="https://crypto.news/changpeng-zhao-canada-passport-binance/" rel="noopener noreferrer nofollow"> Binance founder Changpeng Zhao ordered to surrender Canadian passport </a>

Grayscale proposes Bitcoin Mini Trust ETF, aims for lower fees

crypto.news

Other articles published on Mar 12, 2024

Amp Price Prediction: AMP Crypto Skyrockets 243%, But Traders Rush To This Top Performing Meme Co...

Giant Market Maker Wintermute Allegedly Started Accumulating This Altcoin

Fetch.ai Price Surge: What’s Happening with FET?

Over $26 Million in XRP Withdrawn from Binance as Price Surges 10%

Following Historical Patterns, Will BTC Top Out in the Next 9–12 Months?

Coinbase Charges U.S. SEC with Legal Violations for Dismissing Cryptocurrency Regulation Proposals

Join our free newsletter for daily crypto updates!