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Grayscale, which presently provides the most expensive spot bitcoin ETF, said in its most recent filing that a spinoff version of the fund would have the lowest fee, at 0.15%, based on pro forma financials.
1.5% is the charge for the current Grayscale Bitcoin Trust (GBTC).
According to the filing, Grayscale plans to contribute 10% of its GBTC assets to the Bitcoin Mini Trust (BTC) upon its introduction. Shares of the BTC trust will be granted to GBTC shareholders right away. (The pro forma financial statements include estimates of future costs and income, predicated on historical performance and future business goals).
Grayscale’s Bitcoin Mini Trust aimed to provide investors in GBTC with a less expensive option that would put it more competitive with other Bitcoin ETFs that were authorized back in January. The lowest-cost spot Bitcoin ETF at the moment is the Franklin Bitcoin ETF (EZBC), which has a fee of 0.19%.
For current GBTC shareholders, the Grayscale spinoff is likewise regarded as a non-taxable event; hence, they won’t be required to pay capital gains tax for their investments to automatically move into the new fund. Certain early-stage GBTC investors with returns in the thousands of percentages might be exposed to a significant taxable event if they decide to switch to a competitor product that costs less.
Over a decade ago, Grayscale launched its GBTC through a private placement. In the middle of 2015, the shares were first made available for purchase over the counter. This went on until January 2024, when GBTC was listed as a spot Bitcoin ETF on NYSE Arca alongside competing products from Fidelity and BlackRock.
With assets under management currently under control at $19.6 billion, Grayscale is presently the closest competitor, with BlackRock’s IBIT fund being at a little over $17.5 billion.
- Published By Team Genuine Reporter