The SEC has approved the Greyscale Bitcoin Mini Trust to trade on the NYSE Arca
The United States Securities and Exchange Commission (SEC) has approved Grayscale's new spot Bitcoin (BTC) exchange-traded fund (ETF) — Grayscale Bitcoin Mini Trust (BTC) — to list on the New York Stock Exchange's (NYSE) Arca electronic trading platform. According to the application submitted on July 26.
The approval marks a significant milestone for Greyscale, which on July 19 announced plans to transition its flagship Bitcoin fund, the Grayscale Bitcoin Trust (GBTC), into a new mini-trust.
“Grayscale is excited to share that. [SEC] The NYES Arca has approved its Form 19b-4 application to list and trade shares of Greyscale Bitcoin Mini Trust (proposed ticker: BTC), a spokesperson told Cointelegraph in an email.
“Grayscale maintains the effectiveness of the BTC Registration Statement. Approval and effectiveness of the registration statement will allow BTC to operate as a US spot Bitcoin ETP alongside GBTC and others.
At 0.15%, the MiniTrust's management fees are 10x lower than Greyscale's old GBTC fund, which charges an annual fee equal to 1.5% of assets under management.
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On July 31st, Greyscale will contribute 10% of the position held by GTBC to the Mini Trust Bitcoin. Existing GBTC shareholders will receive shares in the Mini Trust in direct proportion to the shares they hold in GBTC. As a result of the wire, GBTC holders will hold the same amount of BTC as before, but in two different currencies.
On July 8, Greyscale announced a similar move with the Greyscale Ethereum Trust (ETHE) ETF, with existing ETHE shareholders receiving a proportional distribution of shares in the new Greyscale Ethereum Mini Trust (ETH).
The Greyscale GBTC and ETHE Funds are among the first BTC and Ethereum funds launched in the United States in 2013 and early 2017, respectively. The GBTC fund holds more than $17 billion in assets.
According to a person familiar with the matter, the distribution will be given to existing shareholders out of the tax fund and into the new exchange-traded fund.
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