Key insights
- Grayscale introduces The Bitcoin Mini Trust with a cheaper fee at 0.15% trading on NYSE Arca.
- All investors in the current GBTC will be paid one Mini Trust share per GBTC they hold.
- This new Mini Trust is expected to attract more investors given its lower fees than those offered by Grayscale, to position itself as a direct competitor to the firm in the provision of Bitcoin ETFs.
Grayscale Investment has launched the Grayscale Bitcoin Mini Trust identified as $BTC, which has been designed with an almost-zero fee of 0.15%. It is derived from Grayscale’s largest product, the Bitcoin exchange-traded fund (ETF) that trades under the name GBTC.
Grayscale’s New Spin-Off Fund
The investment company filed for the Mini Trust fund with the US Securities and Exchange Commission (SEC) some months back. This new fund will work in parallel with the original fund, giving lower costs to appeal to more and more clients. Grayscale added that any current holder of GBTC will get one share in the Mini Trust for every share of GBTC they own without any change in the portfolio.
Trading on NYSE Arca
The Grayscale Bitcoin Mini Trust is set on NYSE Arca. Coinbase Custody Trust Company is going to be a digital asset custodian while Foreside Fund Services will be a marketing agent of the Fund.
Grayscale’s GBTC especially has experienced large redemptions because of a high 1.5% trading fee. The new Mini Trust will be supported with its capital of 0.15% fee, this places Grayscale as the cheapest Bitcoin ETF issuer in the country and seeks to reverse this trend.
This lower fee aims to capture more of the market share hence the move by Grayscale. The Mini Trust is being introduced at the right time because the competition has started to emerge and different Bitcoin ETFs are currently operating, and they are coming at a fee that ranges from 0.19% and 0.25%.
Continued Innovation in ETFs
Grayscale is developing other ways to invest in the Bitcoin space with the launch of the Grayscale Bitcoin Mini Trust. This new product allows investors in the options to get exposure to Bitcoin at a cheap price depending on Bitcoin performance.
David Lavalle, CEO of Grayscale stated ‘ The Grayscale team has always seen Bitcoin’s potential since GBTC’s initial launch in 2013, With the new Grayscale Bitcoin Mini Trust, We further aim to expand the entry point to Bitcoin in an SEC-regulated investment product.
Todd Rosenbluth, the Head of Research at VettaFi, noted that “Grayscale has been investing in the cryptocurrency space for years and has a decent background in ETFs; It’s good to see them provide a cheaper Bitcoin ETF to attract the advisors”.
Personal Note From MEXC Team
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