Breaking News: Grayscale Unveils Bitcoin Mini Trust, a Low-Cost GBTC Alternative

Crypto News- Grayscale, the manager overseeing the colossal $28 billion GBTC spot bitcoin exchange-traded fund (ETF), has set its sights on introducing a more cost-effective version of the ETF. In a filing submitted on Tuesday, the company revealed plans to seek approval from the U.S. Securities and Exchange Commission (SEC) to allocate a portion of GBTC shares towards seeding this new product, dubbed the Grayscale Bitcoin Mini Trust.

Breaking News: Grayscale Unveils Bitcoin Mini Trust, a Low-Cost GBTC Alternative

If greenlit, this move could spell good news for existing GBTC investors, who stand to benefit from reduced overall fees without incurring capital gains taxes as they transition to the new trust. High fees have long been a sticking point for GBTC shareholders, especially in comparison to competing offerings in the market.

While specific fee details remain under wraps for now, insider sources suggest that the fees for the Grayscale Bitcoin Mini Trust will be on par with some of the lower-cost bitcoin ETFs currently available. Grayscale’s GBTC, with its relatively hefty 1.5% fees, has stood apart from the pack since the approval of other spot bitcoin ETFs earlier this year, such as Franklin Templeton Digital Holdings Trust (EZBC) and Bitwise Bitcoin ETF (BITB), both boasting fees under 0.3%.

The concept of offering both a flagship fund and a miniature version is not unheard of in the ETF realm. However, Grayscale’s approach to creating the BTC proposal through a corporate spinoff from GBTC sets it apart. Despite experiencing substantial outflows exceeding $10 billion since its approval in January, GBTC has managed to maintain its original asset value thanks to the ongoing bullish trend in crypto markets. Nevertheless, the appeal of lower fees is expected to play a pivotal role for registered investment advisors (RIAs) and broker networks as they consider recommending bitcoin ETF products to clients. Hence, the introduction of a more affordable alternative by Grayscale appears to be a strategic move in response to market demands.