The United States Securities and Exchange Commission (SEC) greenlighted the New York Stock Exchange (NYSE) Arca’s submission to list shares of the Bitcoin Mini Trust, managed by asset management company Grayscale. Additionally, the SEC granted accelerated approval for the Chicago Board Options Exchange (CBOE) BZX on the same day.
The new Bitcoin Mini Trust, established as a spin-off from the Grayscale Bitcoin Trust, allocates a portion of its assets to the new fund. Following its conversion from a close-ended fund to a spot exchange-traded fund (ETF), GBTC has been lagging behind its competitors regarding inflows, primarily due to the company’s decision to uphold greater fees in comparison to similar investment products.
Grayscale requests a 1.5% fee from GBTC holders, meanwhile a fee of 0.15% is set for the Bitcoin Mini Trust. This strategic pricing aims to attract new investors while keeping current GBTC holders who prefer not to sell their shares to bypass a taxable event.
Additionally, a part of GBTC holdings will be converted to the new fund, which is not anticipated to trigger a taxable event.
Grayscale’s GBTC And ETHE Funds Remain Among The Most Established Funds In United States
Initially, the regulator granted the approval of the 19b-4 form for the Grayscale Bitcoin Mini Trust last week. Meanwhile, the recent move marks the coming in force of the registration statement on form S-1, which the firm submitted in March.
The company‘s GBTC and ETHE funds are some of the most established spot Bitcoin and Ethereum funds in the United States, having been launched in 2013 and 2017. The GBTC fund currently manages assets exceeding $17 billion.
The latest development follows the SEC’s approval of eleven spot Bitcoin ETFs in January that later collectively attracted substantial investment. Additionally, the SEC recently approved spot Ethereum ETFs, a move that surprised many. Grayscale has received approval for both a spot Ethereum ETF and a spot Bitcoin ETF.
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