What is the reason for the 10 percent drop in Grayscale's Bitcoin fund GBTC?
The GBTC fund, which Grayscale has offered to its customers for nearly 10 years and turned into an ETF on January 10, experienced a 10 percent decline before the US markets opened. Behind this depreciation was the passing of 10% assets of those who own GBTC shares into the company's new fund, the mini-Bitcoin fund (BTC).
Fund transfers have officially started for the Grayscale Bitcoin Mini Fund (BTC), which was approved by the US Securities and Exchange Commission (SEC) last week and which is considered certain to open to transactions tomorrow after the latest details are now announced.
The transition behind the 10% decline...
While details were prepared for the fund, which will be traded with the abbreviation BTC, Grayscale's main Bitcoin fund, GBTC, decreased by 10% before the US markets opened today. ETF expert James Seyffart said that behind this decline was more than a loss of value caused by sales, the Grayscale company's share transitions.
The mini-fund, which has the lowest transaction fee rate of 0.15% among ETFs, also automatically falls into the hands of GBTC holders. For example, if the value of one GBTC share is $10 and the investor has a total of $100, 10 GBTC shares, 1 in 10 of each share is switched to this mini-fund.
Therefore, the GBTC investor has 10 mini-funds from 1 dollar each. However, the investor's GBTC share value also drops from 100 to $90. The investor's total assets of $100 are protected.
This automatic transition from GBTC to mini-BTC fund has also brought a decrease in the fund at the same rate.
The same happened with the Mini-Ether background
As it is known, the Grayscale company made the same transition under the fund of Ether. Shares of ETHE holders, Greyscale's main Ether fund, were transferred to the mini-Ether fund on July 18. In the GBTC, this situation was kept on hold for today.
Grayscale's mini-Ether fund also stands out as the Ether ETF (0.15%), which has the lowest transaction fee, like the mini-Bitcoin fund.
