The financial giant behind the Grayscale Bitcoin Trust (GBTC) is filing a new BTC product with the leading US securities regulator.
According to a new filing with the US Securities and Exchange Commission (SEC), Grayscale is attempting to register a ‘Grayscale Bitcoin Mini Trust’, a spin-off of GBTC.
The new product is intended to allow investors to hold fractional ownership units in the trust, and will reportedly have lower fees than usual, although a specific fee structure has not been revealed.
According to Bloomberg ETF expert James Seyffart, existing holders of GBTC will have some of their holdings converted into the new Grayscale Mini Trust, which will trade under the ‘$BTC’ ticker.
Says the analyst,
“It’s happening! Grayscale has just filed to launch the ‘Grayscale Bitcoin Mini Trust’, expecting it to have a competitive fee. It will trade under the ticker $BTC and will emerge from a spin-off of $GBTC This means that holders of $GBTC will convert a percentage of their assets into $BTC…
No fee has been disclosed yet or what percentage of $GBTC will be spun off, but I’m pretty sure this will be a non-taxable event for some of that stock to end up in a cheaper and cost-competitive product. .
But using the spin-off mechanic wasn’t something I expected or thought about. And it certainly helps GBTC holders in the long run – especially those taxpayers who were more or less stuck with potential capital gains tax increases. Not a complete solution. But much more useful than launching a standalone product from scratch.
The first impression is that it’s a nice middle ground between helping customers and not decimating their revenue. However, I still need to see the %’s and costs.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on TweetFacebook and Telegram
Surf to the Daily Hodl mix
Featured image: Shutterstock/tanatpon13p/Chuenmanuse
