The BTC Trust is designed to be a “spin-off” of Grayscale’s GBTC.
Grayscale’s introduction of the BTC Trust marks another step in its evolution.
Grayscale Investments has officially launched its Grayscale Bitcoin Mini Trust (BTC), which began trading at 4 a.m. ET on Wednesday on NYSE Arca. This development follows the SEC’s approval of the 19b-4 form for the new product last week. The BTC Trust is designed to be a “spin-off” of Grayscale’s GBTC, with new shares distributed to GBTC shareholders as a portion of bitcoin is transferred to the new trust.
Zach Pandl, head of research at Grayscale, expressed optimism about the product’s potential, stating that the low-cost exposure to bitcoin is likely to attract significant investor interest. He noted that the product’s launch comes at a time of heightened mainstream attention on crypto, driven by factors such as the Federal Reserve’s expected rate cuts and political developments influencing the U.S. dollar.
Grayscale is excited to announce the launch of Grayscale Bitcoin Mini Trust, ticker: $BTC. BTC comes to market as a spin-off of our flagship fund $GBTC, and at the ultra-low cost of 0.15%. pic.twitter.com/nOrdAPCKTj
— Grayscale (@Grayscale) July 31, 2024
Moreover, the BTC Trust, launching with a NAV per share of $5.84 and a diversified investor base, offers a lower fee structure compared to other spot Bitcoin exchange-traded products. It is not regulated under the Investment Company Act of 1940, which distinguishes it from typical mutual funds or ETFs.
A Milestone?
As of July 30, 2024, it has assets under management (AUM) of $1.7 billion. The trust’s spin-off from GBTC is not anticipated to be a taxable event for shareholders, but investors should consult their tax advisors for guidance.
David LaValle, Senior Managing Director and Head of ETFs at Grayscale, highlighted the company’s long-standing commitment to Bitcoin and its transformative potential. He emphasized that the new BTC Trust aims to lower barriers to Bitcoin access through an SEC-regulated investment vehicle.
Grayscale’s introduction of the BTC Trust marks another step in its evolution, leveraging over a decade of experience managing GBTC to offer innovative investment solutions to clients.
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