The SEC has approved Grayscale's Bitcoin Mini Trust for trading on NYSE Arca, paving the way for a new spot Bitcoin ETF with significantly lower management fees.
The U.S. Securities and Exchange Commission (SEC) has given the nod to Grayscale’s latest venture, the Bitcoin Mini Trust, for listing on the NYSE Arca. This marks a significant step for Grayscale, enhancing its offerings with a new spot Bitcoin exchange-traded fund (ETF).
Key Points:
SEC Approval:
Grayscale’s Bitcoin Mini Trust (BTC) has been approved by the SEC for listing on NYSE Arca.
The approval follows Grayscale’s announcement on July 19 to spin off a portion of its flagship Bitcoin fund, GBTC, into the Mini Trust.
Management Fees:
The Mini Trust will have a management fee of 0.15%, which is significantly lower than the 1.5% annual fee charged by the GBTC fund.
Shareholder Distribution:
On July 31, Grayscale will transfer 10% of GBTC’s spot Bitcoin holdings to the Mini Trust.
Current GBTC shareholders will receive proportional shares in the Mini Trust, maintaining their overall Bitcoin holdings but across two funds.
Tax Advantage:
The distribution offers a tax-advantaged way for existing shareholders to transition from the legacy GBTC fund to the new Mini Trust ETF.
Historical Context:
Grayscale’s GBTC and ETHE funds have been leading spot BTC and Ethereum funds in the U.S. since their inception in 2013 and 2017, respectively.
The GBTC fund currently holds over $17 billion in assets.
Grayscale’s Bitcoin Mini Trust approval by the SEC represents a pivotal development in the cryptocurrency investment landscape. With lower fees and strategic distributions, the new ETF aims to provide an attractive alternative for investors, potentially boosting Grayscale’s market presence.
Source: Cointelegraph
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