Bitcoin ETF provider Grayscale has disclosed some information on its spin-off fund, the Bitcoin Mini Trust (BTC), including a more appealing 0.15% fee than the uplisted mothership GBTC product, as per the pro forma financials in its most recent filing.
Additionally, the filing gives an indication of how much Bitcoin (BTC) Grayscale will donate to the mini fund: 63,204 Bitcoin, or 10% of the current assets in GBTC.
The BTC trust will automatically issue and distribute shares to holders of GBTC shares. (Pro forma financial statements are forecasts of future earnings and costs, derived from historical data and future strategies of a business.)
Grayscale’s Bitcoin Mini Trust aims to offer GBTC investors a more affordable option, making GBTC more competitive with other Bitcoin ETFs approved in January.
The current shareholders of GBTC are also exempt from capital gains tax as a result of this spinoff, meaning their investments will immediately transfer into the new fund.
If they choose to go to a rival product with a cheaper cost, certain early-stage GBTC investors with profits in the thousands of percentages would be subject to a large taxable event.
Grayscale’s GBTC was first made available through a private placement more than ten years ago. It has a rather high 1.5% fee. The shares were first offered for sale over the counter in the middle of 2015. This persisted until January 2024, when GBTC was uplisted as a spot Bitcoin ETF on NYSE Arca.
Grayscale is currently the closest competitor, with BlackRock’s IBIT fund coming in at a little over $17.5 billion with assets under management now under control at roughly $19.6 billion.
Also Read: Grayscale Bitcoin ETF GBTC Plummets 50% Pre-Bitcoin Halving
