The US Securities Commission has agreed to let Grayscale open a second Bitcoin spot ETF, similar to the already traded mini Ethereum ETF.
SEC gives preliminary approval to Grayscale's “mini” Bitcoin ETF proposal
According to a notice posted early on the morning of July 27, the US Securities Commission (SEC) has given preliminary approval to crypto asset management company Grayscale to issue a Bitcoin ETF called Grayscale Bitcoin Mini Trust. The fund will be codenamed BTC, and is designed to be a complementary product to the Grayscale Bitcoin Trust (GBTC) that has been trading since January 2024.
Grayscale Bitcoin Mini Trust 19b-4 has been APPROVED…
— Nate Geraci (@NateGeraci) July 26, 2024
Spinoff from GBTC set to happen next Wednesday (date of record is Tuesday).
Will be lowest cost spot bitcoin ETF at 15bps. pic.twitter.com/opFrSAENFu
As reported by Coin68, Grayscale in March applied to open the Grayscale Bitcoin Mini Trust , revealing that the fund will have a much lower annual management fee than GBTC's current 1.5%/year figure. High management fees are also the reason why GBTC has continuously seen an outflow of funds throughout most of the time this Bitcoin ETF has been trading, as investors move assets to other options with lower fees.
Bitcoin spot ETFs have been approved by the SEC. Source: Bloomberg (January 11, 2024)
However, according to procedures, Grayscale still needs to complete the S-1 filing and submit it to the commission for final approval before it can list the Bitcoin Mini Trust fund on the stock exchange.
This can be XEM as Grayscale's effort to regain some of the lost market share in the Bitcoin ETF group. At the end of May 2024, GBTC lost its position as the largest Bitcoin ETF when it was surpassed by BlackRock's IBIT fund. At the time of writing, IBIT is holding 21.9 billion USD in Bitcoin, while this figure for GBTC is only 18.3 billion USD.
It is expected that the annual management fee of Grayscale Bitcoin Mini Trust will be only 0.15% , lower than all competitors in the same segment.
Grayscale's move to create a “mini” Bitcoin fund is similar to the company's approach to its Ethereum ETF . Last week, the SEC licensed the company's two Ethereum spot ETF products, Grayscale Ethereum Trust (ETHE) and Grayscale Ethereum Mini Trust (ETH), with management fees of 2.5%/year and 0, respectively. ,15 years.
Information on Ethereum ETF proposals approved by the SEC. Source: Bloomberg (July 19, 2024)
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