Grayscale Eyes ‘mini’ GBTC Spinoff as Outflows Top $11.05B

Grayscale eyes a new product to corner the Bitcoin ETF market with lower fees.

Eagle looking around with binoculars, Bitcoin ETF glowing in the background.
Created by Kornelija Poderskytė from DailyCoin
  • Grayscale has requested the SEC to introduce a new Bitcoin product.
  • The product will be a spinoff of the company’s GBTC fund.
  • The development comes as cumulative GBTC outflows have topped $11 billion.

Bitcoin ETF manager Grayscale on Tuesday filed a request with the U.S. Securities and Exchange Commission (SEC) to introduce a new mini-version product of its GBTC fund.

The filing comes after Grayscale’s GBTC captured less than 20% of the cumulative spot bitcoin ETF trading volume in the U.S. market for the first time on Friday last week, followed by a record-high outflow of 6,850 BTC (approximately $494M) on Monday.

Grayscale New Mini Trust, Seeded by GBTC Shares

According to a Reuters report on March 12, Grayscale’s S-1 form filing with the SEC seeks to create a new product named the Grayscale Bitcoin Mini Trust, which will trade under the ticker symbol “BTC” if approved.


The Grayscale Bitcoin Mini Trust is intended to be a spinoff of GBTC, funded by a certain n amount of Bitcoin from the main ETF fund. In exchange, current GBTC investors will get shares of the mini-trust without triggering a capital gains tax event.

The report, citing familiar sources with the matter, claimed the spinoff is a strategy to offer investors lower-fee exposure to Bitcoin.

With this approach, Grayscale will likely match some of the low-cost Bitcoin ETFs in the market and tame the massive outflows the GBTC fund has been witnessing recently, surpassing $11.05B since the fund converted into an ETF.


Since its launch, Grayscale’s GBTC has stood out from the rest of the U.S. spot Bitcoin ETFs with its relatively high 1.5% fees. Other funds, like Bitwise Bitcoin ETF (BITB) and Franklin Templeton Digital Holdings Trust (EZBC), charge relatively lower fees of 0.2% and 1.9%, respectively.

The filing did not disclose the exact fee Grayscale intends to charge for its mini-trust Bitcoin product.

Read about the approval of U.S. spot Bitcoin ETF investments by the Thai SEC:Thai SEC Approves Bitcoin ETF Investments via Private Funds
Stay updated on BlackRock’s Bitcoin ETF new inflow high:BlackRock Bitcoin ETF Marks New Inflow High as BTC Claims ATH

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.