Crypto Updates

Crypto Giant Grayscale Files With SEC for New Bitcoin Mini Trust Spin-Off Product

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The financial giant behind the Grayscale Bitcoin Trust (GBTC) is filing a new BTC product with the leading United States securities regulator.

According to a new filing with the U.S. Securities and Exchange Commission (SEC), Grayscale is attempting to register a “Grayscale Bitcoin Mini Trust,” a spin-off of GBTC.

The new product aims to allow investors to hold units of fractionalized ownership in the trust, and will reportedly have lower than usual fees, though a specific fee structure has not been revealed.

According to Bloomberg ETF expert James Seyffart, existing holders of GBTC will have a portion of their holdings spun off into the new Grayscale Mini Trust, which will trade under the “$BTC” ticker.

Says the analyst,

“It’s happening! Grayscale just filed to launch the ‘Grayscale Bitcoin Mini Trust’ expecting this to have a competitive fee. It will trade under the ticker $BTC and will come from a spinoff from $GBTC. This means $GBTC holders will get some % of holdings spun off into $BTC…

There is no fee disclosed yet orrr what % of $GBTC will spin off but pretty sure this will be a non-taxable event for a chunk of those shares to get into a cheaper and cost competitive product…

But using the spinoff mechanism wasn’t something I expected or thought of. And definitely helps out long term GBTC holders — particularly the taxable ones who were sorta stuck with potential capital gains tax hits. Not a full solution. But way more helpful than launching a standalone product from scratch.

First impression is that it’s a nice middle ground between helping out customers and not decimating their revenue. Need to see the %’s and fees still though.

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