Greyscale’s GBTC ‘spin-off’ Bitcoin Mini Trust goes live on NYSE Arca
American cryptocurrency investment firm Greyscale is offering its spot Bitcoin (BTC) exchange-traded fund (ETF) with the launch of the Grayscale Bitcoin Trust ETF (GBTC) “spin-off”.
Greyscale has officially announced that the Greyscale Bitcoin Mini Trust will begin trading on the electronic securities exchange NYSE Arca on July 31 at 8 am UTC.
What is Grayscale Bitcoin Mini Trust?
Following the approval of the Greyscale Bitcoin Mini Trust from the United States Securities and Exchange Commission (SEC), Greyscale started trading in January 2024 as a spin-off of the Bitcoin ETF.
The new investment product is now listed on NYSE Arca as a Bitcoin Exchange Traded Product (ETP) under the symbol “BTC”.
Greyscale explained that the Greyscale Bitcoin Mini Trust was established by distributing 10% of GBTC's base Bitcoin for BTC.
The spot Bitcoin ETP will begin trading on July 30th at $5.84 in assets under management and $1.7 billion in net asset value.
Greyscale launched the Greyscale Bitcoin Mini Trust in 2015. It mentions that it is not registered under the Investment Company Act, 1940 and is not regulated under the Investment Company Act, 1940. The organization added:
“The BTC distribution event is colloquially known as a ‘spin-off', and is unlikely to be a taxable event for GBTC or any beneficial ownership of GBTC shares from the previously announced date of July 30, 2024. Investors are encouraged to consult a tax advisor for relevant tax guidance.
Grayscale Bitcoin Mini Trust aims to lower Bitcoin's barrier.
According to David Lavalle, head of ETFs at Greyscale, the purpose of the Greyscale Bitcoin Mini Trust is to help further lower the barrier to entry of bitcoin into an SEC-regulated investment vehicle.
John Hoffman, Head of Strategic Partnerships at Greyscale, highlighted that the Greyscale Bitcoin Mini Trust is the first “mini” Bitcoin ETP launched in the United States. He added:
“With its built-in liquidity, diverse shareholder base and accessible share price, BTC is one of the most efficient tools for investors and financial professionals looking to add low-cost, long-term Bitcoin exposure to their investment accounts.”
According to the announcement, the fee for Greyscale Bitcoin Mini Trust is 0.15% and brokerage fees and other costs may still apply.
