Grayscale to Launch High-Efficiency Bitcoin Mini-Trust

By: Eva Baxter

In a recent turn of events, Grayscale, a renowned cryptocurrency asset management firm, has decided to launch a new Bitcoin mini-trust with an aggressive fee structure set at 0.15%. If realized, this move will offer the lowest fees in the Bitcoin ETF market, undercutting the current lowest-cost spot bitcoin ETF, the Franklin Bitcoin ETF, which charges a 0.19% fee. This action stems from significant outflows from GBTC, which saw its Bitcoin holdings drop from 622,000 to about 300,000 from January 11 to April 19. The high 1.5% fee charged by GBTC against lower fees featured by rival ETFs was a key factor driving the outflows. This proposed mini-trust, however, might offer investors a tax-efficient way to convert their holdings since the transition would not be seen as a taxable event. Crucially, investors who have unrealized substantial gains due to GBTC's significant discount over the years would find this feature particularly desirable. GBTC plans to contribute 63,204 BTC to the new BTC Trust, with 692,370,100 trust shares issued and distributed to GBTC shareholders. The fee for the BTC Shares will be set at 0.15%, making the new trust the most cost-friendly option in the spot Bitcoin ETF market.