Grayscale, an asset management company, has shared fresh information about its upcoming Bitcoin Mini Trust fund, a derivative of the GBTC exchange-traded fund (ETF). Announced in March, this new investment vehicle is planned to function autonomously and provide a more affordable investment alternative for GBTC stock holders.
Grayscale Offers Industry-Low Fee With New Fund
Based on a recent SEC filing, Grayscale, an asset manager, intends to charge only one-tenth (0.1%) of the existing 1.5% fee for its new Bitcoin Mini Trust.
Among the 11 Bitcoin ETFs that received approval in early January, our fund stands out with its 0.15% fee, making it the most affordably priced option compared to Franklin Templeton’s fund which charges a fee of 0.19%.
At the start of the year, GBTC held about 636,200 bitcoins. Grayscale’s recent filing announced their plan to transfer 10% of that amount, which equals 63,620 bitcoins, or approximately $4 billion, to the Mini Trust for its initial distribution.
With a $4 billion distribution, this fund would rank as the fourth largest Bitcoin spot Exchange-Traded Fund (ETF) in terms of assets under management (AUM). This placement would be surpassed only by BlackRock’s IBIT, Fidelity’s FBTC, and Grayscale’s GBTC.
Previously mentioned by Bitcoinist, Grayscale’s existing GBTC investors will be given shares in Grayscale’s Mini Trust instead. The company intends to list this new fund on the New York Stock Exchange Arca with the ticker symbol “BTC.” Trading of the product is anticipated to start right away following the initial distribution.
The Numbers Are Still Hypothetical: Bloomberg Analyst
Bloomberg ETF analyst Eric Balchunas expressed his thoughts about Grayscale’s new Mini Trust through a post on the X platform, stating that the information shared was theoretical or hypothetical financial data.
Instead of “For context, pro forma financials refer to a collection of financial statements that use assumed data to bolster investment proposals, which may undergo adjustments prior to the fund’s actual trading,” you could also say:
This information provided is based on hypothetical financials and does not necessarily indicate that Bitcoin’s fee rate will be 0.015%. However, the fact that they chose to use this figure suggests confidence in their projection. Feel free to use it as you see fit. I’ll keep you updated with any new developments.
— Eric Balchunas (@EricBalchunas) April 20, 2024
Balchunas noted in his post:
The chosen figure of 15bps for Bitcoin’s potential increase isn’t set in stone. However, since everyone is paying close attention, the developers opted to announce this number.
During this time, investors have been taking their money out of the Grayscale Bitcoin Trust at a steady pace since its launch early in the year. As reported by SoSo Value, there was an outflow of approximately $45.82 million from the trust in the last week alone.
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2024-04-21 10:56