Grayscale’s Bitcoin Mini Trust Spinoff Fund Offers Record-Low 0.15% Fee Under Ticker BTC

The newly established Grayscale Bitcoin Mini Trust, which represents 10% of the Bitcoin holdings in Grayscale’s GBTC fund, offers a more favorable fee structure compared to its parent fund.

Grayscale’s most recent financial filing has disclosed additional information about its Bitcoin Mini Trust, which will list on the NYSE Arca with the ticker symbol BTC, featuring a highly competitive fee rate of 0.15%.

Initially announced in March, the spin-off trust allows Grayscale to reallocate a portion of the Bitcoin from its original exchange-traded product into a smaller trust with lower fees, without triggering a taxable event for current shareholders. Shares will be automatically distributed to eligible holders as of a record date, which has yet to be determined.

The pro forma financial statement indicates that Grayscale plans to transfer 63,620 Bitcoin to the Bitcoin Mini Trust for its initial distribution. This quantity represents 10% of the Bitcoin held by GBTC at the beginning of the year, with an estimated value of nearly $4 billion at current market prices. Afterward, both the Bitcoin Mini Trust and GBTC will trade independently and without overlapping exposure, as outlined in the preliminary filing.

The Bitcoin Mini Trust’s fee of 0.15% is among the lowest in the industry, slightly undercutting Franklin Templeton’s EZBC, though fee waivers and other benefits could influence these comparisons. In contrast, GBTC’s fee stands at 1.5%, the highest among spot Bitcoin ETFs in the market.

If the trust were established today, its assets totaling $4 billion would rank it as the fourth-largest spot Bitcoin ETF by assets under management (AUM). It would be behind Fidelity’s FBTC and BlackRock’s IBIT, with IBIT likely becoming the new leader following GBTC’s disbursement.

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* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.