As a seasoned crypto investor with a significant portion of my portfolio allocated to Grayscale products, I am thrilled to hear about the upcoming spinoff of Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETH) into mini trusts. The recent announcement by Grayscale is a game-changer for me and many other investors who have long been seeking lower fee structures in the crypto space.
Grayscale Investments, a prominent asset management company, has excited its shareholders with news about transforming the Grayscale Bitcoin Trust (GBTC) into a smaller trust.
Grayscale File For Bitcoin and Ethereum Mini Trust ETFs
Based on Fulcrum News’ report, the scheduled event is set for July 31. This was also confirmed by James Seyffart, senior ETF analyst at Bloomberg, who mentioned the date in a subsequent post. Seyffart further announced that the Bitcoin and Ethereum mini trusts will become active before the month’s end.
The date for $GBTC ’s spinoff into their mini trust — $BTC — has been set for July 31st.
— James Seyffart (@JSeyff) July 19, 2024
In March, Grayscale, the Bitcoin ETF issuer, submitted an application to the US Securities and Exchange Commission (SEC) for approval to introduce a new investment vehicle. Labeled as the Grayscale Bitcoin Mini Trust, this prospective product aims to provide investors with reduced fees compared to the firm’s existing GBTC trust, which currently manages assets valued at approximately $28 billion.
The intention was for it to serve as a less expensive alternative to GBTC, resembling a cost-effective Grayscale ETF that could compare favorably to the Franklin Templeton Digital Holdings Trust and Bitwise Bitcoin ETF, which have fees as minimal as 0.19% and 0.2%.
Significant action was taken by the firm in April regarding Ethereum, proposing the creation of an Ethereum Mini Trust ETF. Similarly, they reduced the fee for the Grayscale Bitcoin Mini Trust ETF to 0.15%, making it the least expensive among existing Bitcoin ETFs.
Grayscale Gets an Edge With Mini Trust ETFs
In early July, Grayscale declared that shareholders of its Ethereum Mini Trust (ETHE) would receive their corresponding shares in Grayscale’s Ethereum Trust on July 18. This distribution is based on the number of ETHE shares each investor holds.
Starting from the specified date, Grayscale reduced the fee for the Ethereum Mini Trust ETF from 0.25% to 0.15%. Additionally, they announced that during the initial six-month period, no fees will be charged on the first $2 billion worth of Assets Under Management (AUM).
Simultaneously, Grayscale expanded its offerings by creating mini Trust ETFs to broaden its product portfolio and adapt to evolving legal conditions. In response to this move, ETF Store President Nate Geraci commended the company for its strategic pivot and the competition it initiated among market competitors. Geraci expressed his approval by saying,
“Bravo, Grayscale… This is how you go for the jugular.”
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2024-07-19 17:38