Mini version of “BTC” in grayscale, cost may drop to 0.15%, challenging the lowest price in the market.
According to a report by CoinDesk, the registered mini version of Grayscale’s Bitcoin spot ETF (Grayscale Bitcoin Mini Trust, BTC) will charge a fee of 0.15%, which is lower than the current Bitcoin spot funds on the market.
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Mini version of Grayscale Bitcoin spot ETF may only charge 0.15%
Automatic split, capital gains tax exemption
On March 12, Grayscale submitted the S-1 document to the SEC, registering a mini version of the Grayscale Bitcoin spot ETF (Grayscale Bitcoin Mini Trust, BTC), which will be listed on the New York Stock Exchange Arca.
Grayscale plans to split 1% of GBTC’s assets and establish a new Bitcoin Mini Trust (BTC), with shares of the BTC Trust automatically issued and distributed to GBTC shareholders. According to its current financial forecast, the planned split version of the fund will charge a fee of 0.15%, which is lower than the current Bitcoin spot ETFs on the market. Currently, Franklin’s EZBC has a fee rate of 0.19%, making it the lowest-cost Bitcoin spot ETF.
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For existing shareholders of GBTC, the Grayscale split is considered a tax-free event, so these investors can automatically transfer their existing shares to the new fund without paying capital gains tax. This is beneficial for some early GBTC investors who have seen returns of thousands of times, as they would face significant capital gains tax if they were to sell their original GBTC and buy lower-cost products instead.
However, Bloomberg ETF analyst Eric Balchunas mentioned that pro-forma financials are based on a company’s past experience and plans to predict future expenses and revenue. Therefore, the fee disclosed in the financial forecast of 0.15% may not necessarily be the final fee. Nevertheless, Grayscale is aware of the attention and will continue to update everyone with the latest information.
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Mini version of Grayscale Bitcoin spot ETF
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