Grayscale Investments LLC is gearing up to introduce a new Bitcoin investment vehicle, the Grayscale Bitcoin Mini Trust, in response to the diminishing inflows into its flagship Grayscale Bitcoin Trust (GBTC) amidst stiff competition from more cost-effective alternatives. The proposed fund, set to trade under the ticker ‘BTC’, aims to offer a more affordable option to investors by directly holding Bitcoin.
The innovative structure of the Mini Trust seeks to benefit existing GBTC shareholders by granting them shares in the new BTC fund without triggering a tax event. This move comes as GBTC experiences significant withdrawals, with over $11 billion exiting the fund this year, making it one of the most affected among U.S. ETFs.
The new BTC fund’s fee structure is anticipated to be lower than GBTC’s current 1.5% annual charge, although specific details are yet to be disclosed. This strategy mirrors the trend among ETF providers to introduce lower-cost versions of their popular funds to retain and attract investors. For instance, VanEck has recently announced a temporary fee waiver for its VanEck Bitcoin Trust, and other firms like State Street Global Advisors and Invesco Ltd have also launched cost-effective alternatives to their flagship ETFs, underscoring the competitive landscape in the ETF market.
Grayscale’s move to launch the Bitcoin Mini Trust is part of a broader industry shift towards providing investors with more affordable and accessible investment options in the cryptocurrency space.
