- 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.
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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.
