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The United States Securities and Exchange Commission (SEC) has granted approval for Grayscale’s latest spot Bitcoin (BTC) exchange-traded fund (ETF) — Grayscale Bitcoin Mini Trust (BTC) — to be listed on the New York Stock Exchange’s (NYSE) Arca electronic trading platform, as stated in a filing dated July 26.
This approval marks a significant achievement for Grayscale, which revealed on July 19 its intention to separate a segment of its primary Bitcoin fund, Grayscale Bitcoin Trust (GBTC), into the newly established Mini Trust.
“Grayscale is pleased to announce that the [SEC] has approved NYSE Arca’s Form 19b-4 application to list and trade shares of Grayscale Bitcoin Mini Trust (proposed ticker: BTC),” a representative commented.
“Grayscale is awaiting the effectiveness of BTC’s registration statement. The approval and effectiveness of the registration statement will enable BTC to function as a US spot Bitcoin ETP alongside GBTC and other funds.”
With management fees set at 0.15%, the Mini Trust’s fees are approximately ten times lower than those of Grayscale’s previous GBTC fund, which imposes an annual fee of 1.5% of assets under management (AUM).
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On July 31, Grayscale plans to allocate 10% of the spot Bitcoin held by GBTC to the Mini Trust. Current GBTC shareholders will receive shares in the Mini Trust in direct proportion to their holdings in GBTC.
Consequently, GBTC holders will maintain the same amount of spot BTC as previously, but distributed across two distinct funds.
Historical performance of Grayscale Bitcoin Trust (GBTC)
On July 8, Grayscale announced a comparable initiative with its Grayscale Ethereum Trust (ETHE) ETF, where existing ETHE shareholders will receive proportional distributions of shares in the new Grayscale Ethereum Mini Trust (ETH).
Grayscale’s GBTC and ETHE funds are among the longest-established spot BTC and Ethereum funds in the United States, having been launched in 2013 and 2017, respectively. The GBTC fund manages assets exceeding $17 billion.
A source familiar with the situation indicated that the distribution would provide current shareholders with a tax-advantaged method to transition from the legacy fund to the new ETF.
