Asset management company Grayscale has revealed new details about its new bitcoin Mini Trust fund, a “spin-off” of the GBTC exchange-traded fund (ETF). The new fund, which was first announced in March, is expected to operate independently and offer a profitable investment option to GBTC shareholders.
Grayscale offers industry-low rates with new fund
According to a recent presentation With the US Securities and Exchange Commission (SEC), asset manager Grayscale plans to set fees for its new bitcoin Mini Trust at one-tenth of the current 1.5% fee for GBTC.
The 0.15% fee would make the fund the cheapest among the 11 bitcoin ETFs approved in early January, followed by Franklin Templeton's fund at 0.19%.
The filing revealed that Grayscale intends to disburse 63,620 bitcoins, or 10% of the bitcoin held by GBTC at the beginning of the year (equivalent to approximately $4 billion), for the initial distribution of the Mini Trust.
This $4 billion distribution would make the fund the fourth-largest bitcoin spot ETF by assets under management (AUM), behind BlackRock's IBIT, Fidelity FBTC, and Grayscale's own GBTC.
As Bitcoinist previously reported, existing GBTC shareholders will receive Grayscale Mini Trust shares. The asset manager plans to list the fund on the New York Stock Exchange Arca under the symbol “btc” and expects the product to begin trading on the exchange immediately after the initial distribution.
Figures remain hypothetical: Bloomberg analyst
Eric Balchunas, Bloomberg ETF Analyst x.com/EricBalchunas/status/1781762745773281702″ target=”_blank” rel=”noopener nofollow”>took the x platform to share your opinion on the latest update of the new Grayscale Mini Trust. “These are pro forma financials and, as such, hypothetical,” Balchunas wrote in a post on x.
For context, pro forma financial statements refer to a collection of financial statements that use hypothetical assumptions to support investment proposals. This means that some changes may still occur before the fund begins trading.
<blockquote class="twitter-tweet”>
UPDATE: So these are pro forma financials and, as such, hypothetical. It does not necessarily mean twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$btc It will be 15 bp. But the good news is that they had to pick a number for this and they knew people would be watching and they settled on 15 basis points. Anyway, do with that what you want. Updates as I receive them!…
– Eric Balchunas (@EricBalchunas) twitter.com/EricBalchunas/status/1781762745773281702?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>April 20, 2024
Balchunas noted in his post:
It does not necessarily mean that btc is 15 basis points. But the good news is that they had to pick a number for this and they knew (people) would be watching, and they settled on 15 basis points.
This development comes as investors continue to withdraw funds from the Grayscale bitcoin Trust since its debut earlier in the year. According to SoSo Value, GBTC recorded a net outflow of $45.82 million last week.
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bitcoin price breaks above $65,000 again on the daily timeframe | Source: BTCUSDT chart on x/5ySHWhP1/" target="_blank" rel="noopener nofollow">TradingView
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