Grayscale, the digital currency investment manager, made a move into the cryptocurrency market yesterday (Monday) by filing for registration of a new “mini” version of its Grayscale Bitcoin Trust (GBTC) exchange-traded fund (ETF). 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), shows the strategic expansion of Grayscale’s offerings into the cryptocurrency investment landscape. If approved, the Greyscale Bitcoin Mini Trust will be listed on the New York Stock Exchange as a separate entity from Greyscale’s main GBTC fund.
According to the filing, shares of the new bitcoin trust will be distributed to existing GBTC shareholders, along with an undisclosed amount of bitcoin contributed by GBTC to the new trust. The move is seen as a step toward offering investors a price-competitive product, as highlighted by Bloomberg ETF analyst James Seifert, who noted that it would likely be a non-taxable event for shareholders.
The announcement comes in the wake of rising bitcoin prices, hitting a new all-time high of $71,415 on March 11, according to Grayscale’s filing. This rise in the value of Bitcoin highlights the growing interest and adoption of cryptocurrencies among investors.
Today, Grayscale submitted a Form S-1 to the US Securities and Exchange Commission for a new spot bitcoin ETF called the Grayscale Bitcoin Mini Trust.
Upon receipt of appropriate regulatory approvals, the ticker for this product will be $BTC.Pending approval, we are planning for this new ETF… pic.twitter.com/1EQk7jan2R
— Grayscale (@grayscale) 12 March 2024
Zero Fees for Bitcoin Trust ETF Spark Competition
In a related development, asset manager VanEck revealed plans to zero out all sponsor fees for the first $1.5 billion fund in its Bitcoin Trust ETF by March 31, 2025. This move reflects intense competition and efforts among market participants to attract investors. A rapidly evolving cryptocurrency space.
However, while Bitcoin-related ETFs are gaining momentum, the outlook for Ether-based ETFs looks less optimistic. The SEC’s lack of communication and silence on ether ETF approvals has cast doubt on their possible approval by May. Senior Bloomberg ETF analyst Eric Balchunas downgraded the likelihood of Ether ETF approval to just 35%, citing the absence of feedback from regulatory authorities as a relevant factor.
Grayscale, the digital currency investment manager, made a move into the cryptocurrency market yesterday (Monday) by filing for registration of a new “mini” version of its Grayscale Bitcoin Trust (GBTC) exchange-traded fund (ETF). 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), shows the strategic expansion of Grayscale’s offerings into the cryptocurrency investment landscape. If approved, the Grayscale Bitcoin Mini Trust will be listed on the New York Stock Exchange as a separate entity from Grayscale’s main GBTC fund.
According to the filing, shares of the new bitcoin trust will be distributed to existing GBTC shareholders, along with an undisclosed amount of bitcoin contributed by GBTC to the new trust. The move is seen as a step toward offering investors a price-competitive product, as highlighted by Bloomberg ETF analyst James Seifert, who noted that it would likely be a non-taxable event for shareholders.
The announcement comes amid rising bitcoin prices, hitting a new all-time high of $71,415 on March 11, according to Grayscale’s filing. This rise in the value of Bitcoin highlights the growing interest and adoption of cryptocurrencies among investors.
Today, Grayscale submitted a Form S-1 to the US Securities and Exchange Commission for a new spot bitcoin ETF called the Grayscale Bitcoin Mini Trust.
Upon receipt of appropriate regulatory approvals, the ticker for this product will be $BTC.Pending approval, we are planning for this new ETF… pic.twitter.com/1EQk7jan2R
— Grayscale (@grayscale) 12 March 2024
Zero Fees for Bitcoin Trust ETF Spark Competition
In a related development, asset manager VanEck revealed plans to zero out all sponsor fees for the first $1.5 billion fund in its Bitcoin Trust ETF by March 31, 2025. This move reflects intense competition and efforts among market participants to attract investors. A rapidly evolving cryptocurrency space.
However, while Bitcoin-related ETFs are gaining momentum, the outlook for Ether-based ETFs looks less optimistic. The SEC’s lack of communication and silence on ether ETF approvals has cast doubt on their possible approval by May. Senior Bloomberg ETF analyst Eric Balchunas downgraded the likelihood of Ether ETF approval to just 35%, citing the absence of feedback from regulatory authorities as a relevant factor.