Godfrey Benjamin
Asset management firm Grayscale Investments has its shareholders enthralled with the recent update regarding the Grayscale Bitcoin Trust (GBTC) spinoff to a mini Trust.
Grayscale File For Bitcoin and Ethereum Mini Trust ETFs
According to Fulcrum News, the event has been scheduled to take place on July 31. Senior Bloomberg ETF Analyst James Seyffart reiterated the news, pointing out the date. In a follow-up post, Seyffart noted that both the Bitcoin and Ethereum mini trusts will go live before the end of this month.
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, the spot Bitcoin ETF issuer filed with the United States Securities and Exchange Commission (SEC) for permission to launch a new investment product. The potential product, which the firm called Grayscale Bitcoin Mini Trust, is intended to offer investors a lower fee structure than its current GBTC which manages assets worth approximately $28 billion.
It was meant to be a solution to the high fee of GBTC, more like a low-cost Grayscale ETF that could rub shoulders with the likes of Franklin Templeton Digital Holdings Trust and the Bitwise Bitcoin ETF whose fees are as low as 0.19% and 0.2%, respectively.
Noteworthy, the firm did the same for Ethereum in April, requesting to launch an Ethereum Mini Trust ETF. The Grayscale Bitcoin Mini Trust ETF fee was later capped at 0.15%, becoming the lowest amongst all other existing Bitcoin ETFs.
Grayscale Gets an Edge With Mini Trust ETFs
At the beginning of this month, Grayscale announced July 18 as the initial distribution date for shares of its new Grayscale Ethereum Mini Trust. This Initial Distribution entitles each ETHE shareholder to receive shares of the ETH Trust in proportion to their ETHE holdings.
On the said date fee, Grayscale adjusted the fee for the Ethereum Mini Trust ETF from 0.25% to 0.15%. It also added that for the first six months, the fee will be charged at zero on the first $2 billion of Assets Under Management (AUM).
Meanwhile, Grayscale made this mini Trust ETFs as a means of growing its product line as well as respond to the changing legal environment. Hence, ETF Store President Nate Geraci applauded the firm for undertaking this strategic shift and competing with other market players. Geraci stated,
“Bravo, Grayscale… This is how you go for the jugular.”
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