Grayscale, the digital currency investment manager, made a move
in the cryptocurrency market by filing for the registration of a new
“mini” version of its Grayscale Bitcoin Trust (GBTC) exchange-traded
fund (ETF) yesterday (Monday). This new offering is set to operate under the
ticker symbol “BTC” and aims to provide investors with tax-free
exposure to Bitcoin.
The filing, submitted to the United States Securities and
Exchange Commission (SEC), marks a strategic expansion of Grayscale’s offerings
in the cryptocurrency investment landscape. If approved, the Grayscale Bitcoin
Mini Trust would be listed on the New York Stock Exchange as an independent
entity from Grayscale’s main GBTC fund.
According to the filing, shares of the new Bitcoin trust
will be distributed to existing GBTC shareholders, with an undisclosed amount
of Bitcoin contributed by GBTC to the new trust. This move is seen as a step
towards offering investors a cost-competitive product, as highlighted by
Bloomberg ETF analyst James Seyffart, who mentioned that it would likely be a
non-taxable event for shareholders.
The announcement comes against the backdrop of Bitcoin’s
soaring price, hitting a new all-time high of $71,415 on March 11, coinciding
with Grayscale‘s filing. This surge in Bitcoin’s value underscores the growing
interest and adoption of cryptocurrencies among investors.
Today, Grayscale submitted a Form S-1 for a new spot Bitcoin ETF called Grayscale Bitcoin Mini Trust with the U.S. Securities and Exchange Commission.
Upon appropriate regulatory approvals, the ticker for this product would be $BTC.Pending approval, we plan for this new ETF to… pic.twitter.com/1EQk7jan2R
— Grayscale (@Grayscale) March 12, 2024
Zero Fees for Bitcoin Trust ETF Sparks Competition
In a related development, asset manager VanEck revealed
plans to reduce all sponsor fees to zero for the first $1.5 billion of funds in
its Bitcoin Trust ETF until March 31, 2025. This move reflects the intensifying
competition and efforts among market participants to attract investors in the
rapidly evolving cryptocurrency space.
However, while Bitcoin-related ETFs continue to gain
momentum, the outlook for Ether-based ETFs appears less optimistic. The SEC‘s
lack of communication and silence on Ether ETF approvals has cast doubts on
their potential approval by May. Senior Bloomberg ETF analyst
Eric Balchunas downgraded the likelihood of an Ether ETF approval to just 35%,
citing the absence of feedback from the…
