Grayscale has announced that it will be contributing 63,204 bitcoin, or around 10% of GBTC holdings, to the Mini Fund.
In its most recent pro forma financials filing, Bitcoin ETF provider Grayscale revealed some data about its spin-off fund, the Bitcoin Mini Trust (BTC). Among these details is a fee structure that is more competitive at 0.15% compared to the uplisted mothership product, GBTC.
According to the petition, Grayscale will donate 63,204 bitcoins, or 10% of the current assets in GBTC, to the mini fund. This number is included in the filing as an example. Those who own GBTC shares will immediately get shares in the BTC trust.
A more economical choice that is more in line with other bitcoin ETFs authorized in January was the idea behind Grayscale’s Bitcoin Mini Trust, which GBTC investors may take advantage of.
Existing shareholders of GBTC are not required to pay capital-gains tax on their investments in the new fund since this spinoff is likewise not a taxable event for them. If early-stage GBTC investors were to transfer to a competing product with a lower charge, they would incur substantial taxable profits in the thousands of percentage points.
Over ten years ago, Grayscale’s GBTC first surfaced as a private placement offering; it charges a somewhat hefty fee of 1.5 percent. The first public over-the-counter trading of shares took place in the middle of 2015. This went on like this until GBTC became a spot Bitcoin ETF on NYSE Arca in January 2024.
Currently, Grayscale has over $19.6 billion in assets under management, while its closest competitor, BlackRock’s IBIT fund, has grown to slightly more than $17.5 billion.
Also Read: Hong Kong Police Detain 72 Individuals in Relation to the JPEX Scandal
Wallets