Grayscale's new ETF product, Bitcoin Mini Trust, sets fees at 0.15%. Grayscale said it will contribute about 10% of GBTC's assets, about 63,204 Bitcoin, to the Min Fund.
Bitcoin ETF provider Grayscale has provided some details about its spin-off fund Bitcoin Mini Trust (BTC), including a more competitive 0.15% fee than its listed parent product GBTC, according to preliminary financial reports in its latest filing.
The statement also provides a clear example of the amount of Bitcoin (BTC) Grayscale will contribute to the mini-fund: 63,204 Bitcoin, or 10% of existing assets in GBTC, according to the statement. BTC trust shares will be issued and automatically distributed to GBTC shareholders. (Pro forma financial statements are projections of future expenses and revenues based on the company's past experience and future plans.)
Grayscale's Bitcoin Mini Trust was designed to offer GBTC investors a lower-fee option that is more competitive with other Bitcoin ETFs approved back in January.
This spin-off is also considered a tax-free event for existing GBTC shareholders, so these investors are not required to pay capital gains tax for the automatic transfer to the new fund. Some early stage GBTC investors with gains in the thousands will face a significant taxable event to switch to a competitor's product with a lower fee.
Grayscale's GBTC, which charges a relatively high fee of 1.5%, dates back more than a decade and was initially offered through a private placement. In mid-2015, shares began to be publicly traded on the over-the-counter market.. This continued until January 2024, when GBTC was listed on the NYSE Arca as a spot Bitcoin ETF.
Grayscale's current assets under management are approximately $19.6 billion; its closest competitor, BlackRock's IBIT fund, rose to just over $17.5 billion.