Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The U.S. Securities and Exchange Commission (SEC) has approved the Grayscale Bitcoin Mini Trust, a smaller variant of Grayscale’s primary Bitcoin Trust (GBTC).
This approval, issued on Friday, specifically relates to the 19b-4 form for the new trust, as stated in an official filing.
The mini trust, which will operate under the ticker symbol “BTC,” is intended to be a spin-off from GBTC.
GBTC Shareholders to Receive New Shares of the Mini Trust
As per an S-1 filing from March, shareholders of GBTC will obtain new shares of the mini trust as GBTC designates a portion of its bitcoin assets to this new entity.
“The Commission finds that the proposals, akin to other exchange-traded products (ETPs) it has authorized, are structured to guarantee fair disclosure of information essential for accurate pricing of the trust’s shares, prevent trading under opaque conditions, safeguard non-public material information regarding the trust’s portfolios, and uphold fair and orderly markets for the trust’s shares,” the SEC stated.
Despite the SEC’s endorsement, Grayscale is still waiting for the registration statement for the Grayscale Bitcoin Mini Trust to become effective.
With management fees set at 0.15%, the Mini Trust’s fees are approximately 10 times lower than those of Grayscale’s older GBTC fund, which imposes an annual fee of 1.5% of assets under management (AUM).
This development follows the SEC’s approval of 11 spot Bitcoin ETFs over seven months ago, which have collectively drawn in millions of dollars.
Recently, the SEC also surprised the market by approving spot Ethereum ETFs.
Related Posts
Grayscale has secured approval for both spot Ethereum and spot Bitcoin ETFs.
On July 8, Grayscale announced a similar initiative with its Grayscale Ethereum Trust (ETHE) ETF, where existing ETHE shareholders will receive proportional distributions of shares in its new Grayscale Ethereum Mini Trust (ETH).
Grayscale is pleased to announce the launch of Grayscale Ethereum Mini Trust, ticker: $ETH. Investors can gain #Ethereum exposure in their portfolio at 0% fee for the first six months*.
Our flagship Ethereum fund, Grayscale Ethereum Trust, ticker: $ETHE also uplisted to @NYSE. pic.twitter.com/tRKsQILVvW
— Grayscale (@Grayscale) July 23, 2024
Jersey City’s Pension Fund to Invest in Bitcoin ETFs
The municipal pension plan of Jersey City, New Jersey, is preparing to allocate a portion of the city’s pension fund to crypto ETFs.
The municipal pension fund, known as the Employees Retirement System of Jersey City, is currently working through regulatory requirements with the SEC to incorporate a segment of its assets into Bitcoin ETFs.
While specific details regarding the percentage of pension funds allocated to Bitcoin ETFs remain undisclosed, Mayor Fulop suggested that Jersey City’s strategy would reflect that of Wisconsin’s state pension fund, which committed a 2% allocation to Bitcoin ETFs earlier this year.
As reported, the quantitative fund Kbit believes that greater returns are found within the digital asset sector itself as hedge funds revert to traditional strategies like the basis trade to benefit from the recent rise of crypto ETFs.
“The larger opportunities, higher return opportunities are in the crypto native markets,” stated Ed Tolson, founder and CEO of Kbit, during a recent interview.
Tolson highlighted the significance of engaging with centralized crypto exchanges and trading various crypto instruments, including tokens, perpetual swaps, and derivatives.
The post Grayscale Bitcoin Mini Trust Approved by SEC, Pending S-1 Registration appeared first on Cryptonews.
