Key Takeaways
- Grayscale launched the Bitcoin Mini Trust on NYSE Arca.
- The Mini Trust is a 'spin-off' from Grayscale Bitcoin Trust ETF.
- The product started with $1.7 billion in assets under management.
American investment firm Grayscale has introduced a new investment product, the Grayscale Bitcoin Mini Trust, on NYSE Arca. This move comes after launching its spot Bitcoin ETF in January 2024.
The Grayscale Bitcoin Mini Trust began trading on July 31 at 8 am UTC under the ticker “BTC.” It represents a “spin-off” from the Grayscale Bitcoin Trust ETF (GBTC), with 10% of GBTC’s underlying Bitcoin allocated to this new product.
Starting with a net asset value of $5.84 per share and $1.7 billion in assets under management as of July 30, the Grayscale Bitcoin Mini Trust offers a new way for investors to access Bitcoin. Notably, it is not registered under the Investment Company Act of 1940, distinguishing it from most mutual funds.
Grayscale’s head of ETFs, David LaValle, stated that the new trust aims to lower the barrier to Bitcoin investments within an SEC-regulated framework. John Hoffman, head of strategic partnerships at Grayscale, highlighted that it is the first “mini” Bitcoin ETP in the U.S., offering built-in liquidity and a diversified shareholder base.
The trust’s fee is set at 0.15%, with additional brokerage fees potentially applying. Investors are advised to consult tax advisors regarding any tax implications related to this new investment vehicle.
