American cryptocurrency investment firm Grayscale has introduced a new investment product, the Grayscale Bitcoin Mini Trust, as a “spin-off” of its existing Grayscale Bitcoin Trust ETF (GBTC).
This new product started trading on the NYSE Arca electronic securities exchange at 8 am UTC on July 31.
The Grayscale Bitcoin Mini Trust is an extension of the spot Bitcoin ETF that Grayscale launched in January 2024, following approval from the United States Securities and Exchange Commission.
The new trust is listed under the ticker “BTC” and is designed to offer investors exposure to Bitcoin.
Grayscale explained that the Mini Trust was created by reallocating 10% of the Bitcoin held by GBTC to the new trust, a process described as involving innovative mechanics of initial seeding.
This spot Bitcoin ETP begins trading with a net asset value per share of $5.84 and $1.7 billion in assets under management as of July 30.
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Notably, the Grayscale Bitcoin Mini Trust is not registered under the Investment Company Act of 1940, differentiating it from most mutual funds.
The firm clarified: “BTC’s distribution event is colloquially known as a ‘spin-off,’ and is a corporate action that is not expected to be a taxable event for GBTC nor any beneficial owner of GBTC shares as of the previously announced record date of July 30, 2024.
Investors are encouraged to consult a tax advisor for related tax guidance.”
David LaValle, Grayscale’s head of ETFs, stated that the Grayscale Bitcoin Mini Trust aims to lower the barrier to accessing Bitcoin within an SEC-regulated investment framework.
John Hoffman, Grayscale’s head of strategic partnerships, noted that this is the first “mini” Bitcoin ETP launched in the US, emphasizing its liquidity, diverse shareholder base, and accessible share price.
He said, “BTC is one of the most efficient tools for investors and financial professionals seeking to add low-cost, long-term exposure to Bitcoin to their investment accounts.”
The Grayscale Bitcoin Mini Trust has a management fee of 0.15%, with additional brokerage fees and other expenses potentially applying.
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